EU retools Trump trade war tripwire into China shipments surge alarm

In April 2022, the European Union established a covert "import surveillance task force" to monitor the consequences of the US-China trade war on the EU economy. The bloc feared that Chinese goods reaching the US would be redirected to Europe at lower prices, threatening local manufacturers. Now, with a new trade war looming, Brussels is using the task force as an early warning system for alarming surges in Chinese imports.

Denis Redonnet, the EU's chief trade enforcer, revealed that the system has identified "potentially worrying trends for almost a quarter of all imports into the EU," with China as the primary culprit. The import barometer, released last week, highlighted 902 product categories with rapidly rising imports and falling prices, primarily in sectors such as machinery, textiles, basic metals, and chemicals.

Redonnet hinted at the possibility of Brussels launching safeguard investigations and imposing tariffs on these sectors. The EU is also considering new tools, including a "overcapacity instrument" and a diversification mechanism, to address these import surges. However, Beijing warns that any retaliatory measures could harm mutual trust and disrupt the China-EU economic and trade cooperation.

EU leaders are preparing for a debate on China at the upcoming European Council summit, with France and Spain downplaying their differences while emphasizing the need to protect European industry.