EU Moves Toward Tougher Trade Measures Against China Over Growing Imports and EV Competition

European Union officials are signalling a shift toward stricter trade policies to address a widening goods deficit with China, estimated at about $418 billion in 2025. The surge in Chinese imports, particularly electric vehicles, batteries and green‑technology equipment, is putting pressure on key EU industries such as automotive, chemicals and engineering. Leaders from France, Italy, Spain, the Netherlands and Lithuania are pushing proposals that could include higher tariffs, import quotas and increased support for domestic production under the EU’s Net‑Zero Industrial Law. While the bloc wants to protect strategic sectors, it remains cautious because European supply chains still rely heavily on Chinese components and rare‑earth materials.

At the same time, Chinese electric‑vehicle manufacturers are expanding globally, having already built a strong presence in Europe, Asia and Australia. In 2025, EVs accounted for more than 35 % of China’s vehicle exports, with over 2.5 million units shipped abroad. The United States, the world’s second‑largest auto market, is also a target despite high tariffs and strict regulations. Industry analysts note that U.S. carmakers lag in EV development, and some see cooperation with Chinese firms or Chinese‑built plants on U.S. soil as a possible path forward. Former President Donald Trump has expressed support for Chinese EV companies establishing manufacturing in the United States under American labor conditions.