A task force set up by the European Union to determine whether US President Donald Trump’s tariffs will cause Chinese shipments to be rerouted to Europe will start reporting on its findings by the end of the month.
The European Commission – the bloc’s executive arm – set up the task force to monitor the potential change in trade flows, amid fears that Trump’s huge tariffs could see discounted Chinese goods shipped instead to European ports, imperilling local producers.
In collaboration with the bloc’s 27 member states, the task force is analysing the early impact of US tariffs of 145 per cent on Chinese shipments, studying EU and Chinese customs data, as well as records held at national level. Shipping records will also be used to flag sudden changes which may trail monthly customs data.
It is focusing on several hot-button sectors of the Chinese economy which it believes are plagued by industrial overcapacity, and which come with a “higher risk of dumping”, according to EU officials involved in the planning.
Significant changes are thought to take time to take effect, but the EU is adamant not to allow its industries to suffer a second-order impact from Trump’s tariffs. The bloc is ready to use rapid-fire safeguarding measures, intended for situations where an EU sector is affected by an unforeseen, sharp and sudden increase of imports.
Safeguards do not require a lengthy investigation and can lead to import quotas; beyond those, goods can face high import duties. The safeguards have prevented Trump’s first-term tariffs – as well as some recently renewed and expanded – from helping Chinese steel products to flood the EU market.
