EU and China set October deadline to ease trade dispute

The European Union and China have agreed to aim for October as a soft deadline to achieve meaningful progress in their escalating trade dispute. The EU faces a goods‑trade deficit of about €360 billion with China in 2025, driven by a 45 % surge in Chinese imports over the preceding five years. The electric‑vehicle sector is the most visible flashpoint, prompting the EU to impose anti‑subsidy tariffs of up to 35.3 % on Chinese‑made EVs effective October 2024, while China has cancelled high‑level meetings in response.

EU officials, including Commission President Ursula von der Leyen and Trade Commissioner Maros Sefcovic, said the October target gives technical teams time to address issues such as the widening deficit, export controls, intellectual‑property concerns and WTO reforms. The parties will create a joint platform to monitor trade flows and flag sudden spikes. Internally, German automakers worry about retaliation that could affect their sales in China, whereas manufacturers in France and southern Europe push for stronger defensive measures. The EU has also launched anti‑dumping probes and is preparing to extend steel safeguard tariffs, highlighting the high economic stakes for both sides.