In particular, their emphasis was on the challenging trade practices China has been employing, and the steps they’ve been taking to address overcapacities as well as the impacts of U.S. tariffs. As you might have heard, tensions are increasing between China and the U.S. In turn, the EU is taking a very proactive approach to protect its own economic interests.
Upon the launch of the meeting, European Commission President Ursula von der Leyen expressed the need for enhanced stability at a time of unprecedented global economic instability. The EU wants to do more to dampen overcapacities that would negatively impact the European market. To this end, the EU will establish an “Import Surveillance Task Force” aimed at monitoring imports and potential trade diversions resulting from the U.S.’s recent tariff actions.
Von der Leyen engaged hands-on in cooling down trade tensions with Chinese Prime Minister Li Qiang. She underlined the key importance of preventing any further escalation. She suggested a negotiated settlement to the chaos created by U.S. tariffs. In retaliation, China has imposed large tariffs on U.S. exports. In recent retaliatory tariffs, China has added 34% tariffs to all of U.S. goods coming into the country in response to the 54% tariffs by the U.S.
“We will work with industry to make sure we have the necessary evidence base for our policy measures,” von der Leyen stated, underscoring the EU’s commitment to a thorough approach to trade policy.
European Trade Commissioner Maroš Šefčovič spent a week in China in March. His intent was to restore normal diplomatic relations between the two countries. One EU diplomat pointed out that the EU cannot afford to turn its back on Beijing. This announcement is taking place against the backdrop of increasing tensions in EU-China relations as well as a rapid deterioration in EU-U.S. trade relations.
“The vital importance of stability and predictability for the global economy,” von der Leyen said, acknowledging the critical role that both Europe and China play as major global markets. She further remarked on “the responsibility of Europe and China, as two of the world’s largest markets, to support a strong reformed trading system, free, fair and founded on a level playing field.”
The EU continues to sail through these perilous waters, bolstering its trade policy infrastructure and deepening its diplomatic engagement should continue to be a top priority. The establishment of the Import Surveillance Task Force marks a significant step towards maintaining vigilance over import trends and preparing for future challenges in international trade.
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