Story perspectives

EU to Mandate Supply Diversification, Target €1 bn Daily China Deficit

6/20/2026

Summary

Story summary

EU leaders agreed to develop a diversification instrument to address the €1 billion-a-day trade deficit with China.
The European Commission will propose a law obliging EU firms to diversify supplies, announced by President Ursula von der Leyen.
French President Emmanuel Macron called for a European Section 301-style measure, warning the €1 billion-a-day deficit is unsustainable.

History

Historical Context

In March 2018, the United States, led by Trade Representative Robert Lighthizer, invoked Section 301 and slated tariffs on about $200 billion of Chinese goods to curb alleged IP theft and a $500 billion trade gap. The move sparked retaliatory duties and a global trade-war atmosphere. Europe’s response—Ursula von der Leyen and Emmanuel Macron proposing a diversification fund to address a €1 billion-a-day China deficit—mirrors the 2018 U.S. shift and could reshape supply chains.

1 of 2

Story summary

EU leaders agreed to develop a diversification instrument to address the €1 billion-a-day trade deficit with China.
The European Commission will propose a law obliging EU firms to diversify supplies, announced by President Ursula von der Leyen.
French President Emmanuel Macron called for a European Section 301-style measure, warning the €1 billion-a-day deficit is unsustainable.

1 / 2