EU prepares broader tariffs, import curbs on China as trade tensions deepen: Report – Firstpost

The European Union is preparing to significantly expand the use of import quotas and tariffs against China as Brussels hardens its stance against what it describes as an “existential” threat to key industrial sectors from cheap Chinese imports, according to a report by the Financial Times.

European industry chief Stephane Sejourne told the newspaper that Brussels would begin deploying safeguard measures more aggressively and across entire sectors, rather than limiting interventions to individual companies or specific raw materials.

“We will use safeguard clauses in a more general manner on sectors and not just on businesses or particular raw materials,” Sejourne told the FT in comments published on Thursday.

The proposed measures mark one of the strongest signals yet that the EU is moving towards a broader industrial protection strategy as concerns grow over China’s export dominance in sectors ranging from clean technology to heavy industry.

Brussels signals tougher industrial policy

According to the report, the European Commission believes industries such as chemicals, metals and clean technology are increasingly vulnerable to subsidised Chinese competition and overcapacity.

Sejourne warned that lengthy trade investigations were often too slow to protect European industries from market disruption.

“It will be a less fragmented approach,” he said, adding that existing inquiry timelines of eight to nine months often failed to prevent sector-wide damage.

Safeguard measures typically impose import quotas and levy tariffs once those quotas are exceeded. Such measures are allowed under World Trade Organization rules in cases where a sudden surge in imports threatens domestic industries.

The EU already maintains safeguard protections on steel imports, including reduced quotas and steep duties on excess shipments. However, broader use of such measures could substantially widen Europe’s trade conflict with China.

China trade imbalance fuels concerns

Sejourne said the EU’s trade deficit with China had reached roughly €1 billion per day and warned that nearly 29 million European jobs were exposed to risks linked to Chinese overproduction.

“Our objective is not to break with China but to have a real rebalancing,” he said.

The report said Brussels is also examining additional tools aimed at forcing companies to diversify supply chains and reduce strategic dependence on Chinese suppliers.

The European Commission is reportedly considering a separate “resilience” instrument proposed by France and several other member states that could impose additional duties or quotas on suppliers if import dependence crosses certain thresholds.

The issue is expected to be discussed during a special meeting of EU commissioners on China scheduled for Friday, according to the FT report.

Divisions remain within Europe

Despite growing concern over Chinese imports, divisions remain among EU member states over how aggressively to confront Beijing.

The FT report noted that countries such as Germany and Spain remain cautious about sending overly hostile trade signals to China due to their commercial exposure to the Chinese market.

Sejourne warned that unless Brussels adopted a tougher approach, individual member states could eventually seek to reclaim control over trade policy and impose their own border protections.

“In three or four years countries will say ‘you’ve not been able to protect us so we are going to retake control over trade’,” he said, according to the report.

Wider global shift against Chinese exports

The EU’s tougher stance comes amid growing global scrutiny of China’s export-driven industrial strategy and state subsidies.

The United States has already imposed sweeping tariffs on Chinese electric vehicles, batteries and clean-energy products, while several economies are increasingly exploring protective trade measures to shield domestic manufacturing.

The latest developments also underline how concerns around supply-chain resilience and industrial security are reshaping global trade policy beyond traditional geopolitical rivalries.