EU braces for surge of cheap Chinese goods amid US tariffs
- The European Union is at risk of being inundated with cheap Chinese products due to tariffs imposed by the USA on China, warns Italian Minister for European Affairs Tommaso Foti. In an interview with "La Repubblica," he stated that the EU should devise strategies to defend itself against this threat.
- There is data that we as Europeans must consider, declared Foti. - This is due to Chinese overproduction. Beijing is not able to absorb all of its internal production. Therefore, we are at risk of a rapid influx of cheap Chinese goods, he warned.
I believe the Union should consider protective measures in this context, especially since the tariffs by US President Donald Trump on China will lead to the diversification of the Chinese market. The risk for us is increasing, emphasized the Italian minister.
American tariffs on goods from China have been increased by President Trump to 145 percent.
Referring to the tariffs announced by Trump on EU products, which were then suspended for 90 days, Foti expressed the view that Prime Minister Giorgia Meloni, who is heading to Washington on Thursday for talks, can play a "strategic role in facilitating dialogue" between the EU and the USA.
On Friday, the head of the European Commission announced that the EU "will not tolerate a situation in which China redirects goods meant for the American market to the EU due to tariffs."
The head of the European Commission warns: We will take measures to protect the EU market
Ursula von der Leyen, in an interview with the "Financial Times," stated that Brussels will take appropriate measures to protect the EU market if a significant increase in exports from China to Europe is detected.
The head of the European Commission thus reassured concerns that as a result of the US-China trade war, cheap products from China will flood the European market, further reducing the competitiveness of EU companies. She added that she raised this issue in a phone conversation with China's Premier Li Qiang, who assured her that "this risk does not exist because they would stimulate the consumption in China."
She added that if negotiations with the USA do not achieve the intended effect, the EU will automatically reinstate retaliatory tariffs imposed in response to US tariffs on steel and aluminum imports.
Additionally, as von der Leyen emphasized, the EU may impose restrictions on imports of services from the USA. While the United States has a deficit in trade in goods with the EU, it has a very large surplus in trade in services, especially technological ones.
- Companies that offer services make a good business in this [EU] market. And the vast majority of the services, 80 percent of the services, are coming from the US. So again, we want a negotiated solution that is the best for us, all of us, emphasized von der Leyen.
