At talks designed to chart a path forward between the two superpowers on Monday, ministers from EU member states urged action to protect businesses from Chinese industrial overcapacity, amid fears that their economies could be pummelled on two fronts.
The direct impact of Trump’s tariffs on EU shipments to the US will affect 70 per cent of its exports, worth some €370 billion (US$405 billion), when all of them are deployed.
The officials are also bracing for the possibility of an indirect consequence of Trump’s actions: Chinese goods that would have been bound for the US getting diverted to Europe at discounted prices, putting more pressure on local firms that are already under strain.
“We need to rebalance trade relations between the EU and China in line with our industry, our economic security and low carbon agendas,” Laurent Saint-Martin, France’s trade minister, said at Monday’s foreign affairs council.
“At the same time, we need to push our very assertive trade policy with them, especially fighting against overcapacity, especially during this very specific trade war time.”
