EU braces for Chinese market shift amid Trump's tariffs
- The European Union faces the threat of a surge in inexpensive Chinese products due to tariffs imposed by the USA on China. Italian Minister for European Affairs, Tommaso Foti, warns of this risk, according to data. In an interview with the newspaper "La Repubblica," he suggested that the EU should create strategies to protect itself against this challenge.
- There are data points that we as Europeans must consider, declared Foti. - It's about Chinese overproduction. Beijing cannot consume all of its internal production. Therefore, we are at risk of a quick influx of affordable Chinese goods, he warned.
I believe the Union should contemplate protective strategies in light of this scenario, especially since US President Donald Trump's tariffs on China will diversify the Chinese market. The risk for us is growing, emphasised the Italian minister.
American tariffs on goods from China have been increased by President Trump to 145 percent.
Referring to Trump's announced tariffs on EU products, which were later suspended for 90 days, Foti expressed hope that Prime Minister Giorgia Meloni, who is headed to Washington for talks on Thursday, can play a "strategic role in facilitating dialogue" between the EU and the USA.
On Friday, the head of the European Commission announced that the EU "will not tolerate a situation where China redirects goods meant for the American market to the EU because of tariffs".
The head of the EC warns: We will take measures to protect the EU market
Ursula von der Leyen, in an interview with the British newspaper "Financial Times," stated that Brussels will implement appropriate measures to safeguard the EU market if a significant increase in exports from China to Europe is observed.
By doing so, the head of the EC aimed to ease concerns that as a result of the USA-China trade war, low-cost products from China will flood the European market, further undermining the competitiveness of EU companies. She mentioned she discussed this issue over the phone with China's Premier Li Qiang, who assured her that "this risk does not exist because they would stimulate the consumption in China".
She added that if negotiations with the USA do not yield the desired outcome, then the EU will automatically reinstate retaliatory tariffs imposed in response to American tariffs on steel and aluminium imports.
Additionally, as von der Leyen emphasised, the EU may impose restrictions on imports of services from the USA. While the United States has a trade deficit in goods with the EU, it maintains a substantial surplus in service trade, especially in technology.
- Companies that offer services make a good business in this [EU] market. And the vast majority of the services, 80 percent of the services, are coming from the US. So again, we want a negotiated solution that is the best for us, all of us, highlighted von der Leyen.
