Europe
EU fears influx of Chinese goods amid Trump tariffs

According to a report in the Financial Times (FT), analysts warn that discounted imports from China will increase the economic dangers to Europe from Donald Trump’s tariffs, prompting Brussels to prepare measures to protect itself from a wave of cheap goods from Asia.
The direct impact of the US President’s 20% tax on EU products has triggered fears about the outlook for bloc manufacturers, who are already struggling due to US taxes on automobiles and steel.
However, the severity of the tariffs Trump has imposed on economies such as China and Vietnam means that Brussels is on alert against the possibility of Asian-origin products such as electrical goods and machine tools being directed to its own markets.
Officials said the European Commission is preparing new emergency tariffs to respond to this and is increasing surveillance of import flows.
“The sudden trade shock to Asia will likely spill over to Europe as well,” said Robin Winkler, Deutsche Bank’s chief economist for Germany.
Chinese manufacturers will try to sell more of their products in Europe and elsewhere because they face “a tough tariff wall in the US.”
A senior EU diplomat said, “We will have to take protection measures for more of our sectors. We are very concerned that this will be another point of tension with China. I don’t think they will change their models of exporting excess capacity.”
The diplomat added that the EU already applies tariffs of up to 35% on Chinese-made electric vehicles, and Brussels may have to apply “much higher” tariffs on other products.
The EU is among the economies subject to a higher tax than the 10% basic tariff that the White House applies to all partners except Canada and Mexico, but China has been hit even harder.
While some commentators have noted that the tariffs could bring the EU and China closer together, Brussels has been on edge for months over the risk that Chinese manufacturers will try to increase their market share through discounts in the face of US obstacles.
Indeed, French President Emmanuel Macron warned that high taxes on Asian countries could lead these countries to direct their extra capacity to Europe, which could have “major consequences” for continental industries.
The EU had to struggle with similar pressures during Trump’s first term. Following Trump’s implementation of similar measures, Brussels imposed a 25% “safeguard” tariff on steel imports above a quota in 2018. The aim was to prevent exporters such as China from directing their products to the single market due to US barriers.
Officials say they are ready to take action again. A senior Commission official said, “We can close our markets due to an unexpected sudden influx of imports. We have been applying this to steel for some time and we will see if we need it for other sectors as well.”
However, previous experiences show how difficult it is to combat China’s subsidized production. According to the OECD, EU steel production shrank in 2024, while other countries continued to increase their production.
According to the OECD’s latest figures, global excess steel capacity, estimated at 602 million tons in 2024, is expected to reach 721 million tons in 2027, which is more than five times the EU’s steel production.