EU pushes stronger trade defenses to curb Chinese export surge

European Union leaders say the roughly €1 billion‑per‑day trade deficit with China is unsustainable and are debating tougher trade‑defence tools. At a summit in Brussels they agreed to develop a broader toolbox that could include sector‑specific anti‑dumping duties, safeguard measures, anti‑coercion instruments and even a European version of the U.S. Section 301 tariff regime.

Member states are split on the pace and scope of action. France, Italy, Spain, the Netherlands and Lithuania have called for immediate emergency tariffs on products such as chemicals, steel, electric vehicles and clean‑energy technology, while Germany and other cautious members warn against retaliation that could hurt their export‑dependent economies. The EU Commission is expected to review the trade‑defence toolkit later this year and to propose rules that would reduce reliance on Chinese supplies of rare earths and other critical minerals.

At the same time, the bloc stresses the need for constructive dialogue with Beijing and a “de‑risking” strategy rather than full decoupling. The discussions follow a record goods‑trade deficit of €98 billion in the first quarter of 2026 and growing concerns over Chinese export dominance in key industrial sectors.