EU braces for Chinese trade shift as US tariffs bite
- The European Union faces the potential influx of cheap Chinese products, a consequence of tariffs imposed by the USA on China, warns the Italian Minister for European Affairs, Tommaso Foti. In an interview with "La Repubblica," he emphasised the need for the EU to develop measures to protect itself against this threat.
- There is data that we, as Europeans, must consider - Foti declared. - This pertains to Chinese overproduction. Beijing cannot absorb all its domestic production. Consequently, we face the risk of a swift influx of inexpensive Chinese goods - he cautioned.
I believe that the Union should consider protective measures in light of this situation, particularly because President Donald Trump's tariffs on China will lead to a diversification of the Chinese market. The risk for us is increasing - stressed the Italian minister.
President Trump raised American tariffs on goods from China to 145 per cent.
Referring to the tariffs announced by Trump on EU products, which were subsequently suspended for 90 days, Foti expressed the opinion that Prime Minister Giorgia Meloni, who is heading to Washington for talks on Thursday, could 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 in which China redirects goods intended for the American market to the EU due to tariffs."
Head of the European Commission 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 take appropriate action to protect the EU market if a significant rise in exports from China to Europe is observed.
The head of the European Commission addressed concerns that as a result of the US-China trade war, an influx of cheap Chinese products could saturate the European market, further undermining the competitiveness of EU companies. She added that she had discussed this issue in a telephone conversation with Chinese Premier Li Qiang, who assured her that "this risk does not exist because they would stimulate the consumption in China."
She went on to say that if negotiations with the USA do not yield the desired outcome, then the EU will automatically reinstate retaliatory tariffs that were previously imposed in response to US tariffs on steel and aluminium imports.
Moreover - as von der Leyen highlighted - the EU may introduce restrictions on imports of services from the USA. While the United States has a trade deficit with the EU in goods, it enjoys a substantial surplus in services, especially in technology services.
- 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 - von der Leyen stressed.
