Full Breakdown
EU Expands Trade Defence Measures Targeting Chinese Imports
5/28/2026, 10:09:40 PM
Escalating Trade Defence Initiative
On 28 May the European Commission announced plans to extend import quotas, tariffs and safeguard clauses to industrial sectors—chiefly chemicals, metals and clean-technology. The proposal will be examined at a commissioners’ meeting on 29 May and in an internal strategy session on Friday.
Background and Context
EU officials call the surge in Chinese imports a “China shock 2.0”. The bloc’s goods trade deficit with China rose to about €360 billion, with imports up 6.4 % and exports down 6.5 %. Overcapacity in Chinese steel, chemicals and metals threatens manufacturers and up to 29 million jobs.
Key Actors and Proposals
Industry commissioner Stephane Sejourne, trade commissioner Maros Sefcovic and President Ursula von der Leyen lead the push. France, Italy, Spain, the Netherlands and Lithuania back sector-wide safeguards, a “resilience tool” that can trigger quotas when supply concentration is high, and a broader foreign-subsidies regulation.
Data and Statistics
EU goods trade deficit with China rose 2.7 % to €360 billion; imports grew from 44.8 million tonnes (2024) to 58.1 million tonnes (2025). Sejourne cited a €1 billion deficit and warned 29 million jobs could be at risk. The steel regime cuts tariff-free quotas to 18.3 million tonnes (-47 % from 2024) and raises duties to 50 %.
Official Statements and Responses
Sejourne said the EU seeks “rebalancing” instead of a break with China. Sefcovic and five-country coalition propose a diversification rule—three suppliers in two countries. Mao Ning accused the EU of “cherry-picking” data and called it protectionist. He Yadong warned steel tariffs would “severely disrupt China-EU steel trade and global supply chains” and hinted at retaliation.
Criticism and Opposition
Logistics firms DHL, FedEx and UPS warn the €3 flat duty on parcels and quota enforcement could cause customs delays and jeopardise medical-supply chains. Officials fear a “muscular” approach may fragment the single market if member states reclaim trade powers; Germany is not in the coalition.
Conflicting Reports and Gaps
Sejourne cites a €1 billion daily deficit, while EU data show an annual €360 billion shortfall. The 29 million-job risk lacks methodological detail. The resilience tool’s activation criteria, timeline and sector-wide application of the foreign-subsidies regulation remain undisclosed.
Verbatim Quotes
- "We will use safeguard clauses in a more general manner on sectors and not just on businesses or particular raw materials." — Stephane Sejourne, EU Industry Commissioner
- "If one looks only at trade in goods, without considering trade in services and investment income, focus only on headline trade figures, not the structure of trade and where profits flow … it will naturally lead to a one-sided conclusion of trade imbalance." — Mao Ning, Chinese Foreign Ministry Spokesperson
- "The EU's planned steel tariffs are protectionist and will severely disrupt China-EU steel trade and global supply chains." — He Yadong, MOFCOM Spokesperson
- "A rushed rollout could cause delays at EU borders and disrupt supply chains, including for medical supplies." — DHL spokesperson
What’s Next
Commissioners will vote on the safeguard expansion on Friday. WTO talks on the EU steel measures begin in early June, and the coalition plans to formalise the resilience tool before the June 15 G7 summit in Evian-les-Bains.
