EU threatens tariffs on China unless trade imbalance is corrected, warns industry chief

In an interview, EU Industry Commissioner Stéphane Séjourné warned that the Union’s trade relationship with China is “unsustainable” and threatens European employment, citing a daily deficit of more than €1 billion in July and weekly job losses. He noted that 250,000 industrial jobs were lost last year, concentrated in energy-intensive and automotive supply-chain sectors. The Commission has set an October deadline for Beijing to deliver “credible” commitments, ahead of Trade Commissioner Maroš Šefčovič’s planned visit to Beijing.

Séjourné said sector-by-sector talks are ongoing, but China has so far rejected voluntary export cuts. He cautioned that trade defence tools such as anti-dumping duties and tariffs on EVs and solar panels are on the table, while warning of possible Chinese retaliation on rare-earth exports. The EU will also watch the US-China summit, where President Donald Trump and President Xi Jinping will discuss trade and AI, as any escalation could spill over into Europe.