EU Considers New Trade Tools Amid Rising Trade Deficit with China

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The EU is considering new trade measures as its trade deficit with China widens. In 2025, the goods trade gap reached €36.06 billion, a 15% increase from 2024. Fear and Greed Index data reflects growing unease among traders. France’s Macron has proposed a "European Section 301" to accelerate protective measures. Germany, Poland, and others support faster tariff implementation. France, Italy, and Lithuania aim to reduce dependence on China. The EU plans new legislation to diversify supply chains while avoiding retaliation. Altcoins to watch may respond to shifts in trade policy.
CoinDesk reports:

Several European countries are increasing their vigilance over the surge in Chinese exports, and discussions within the EU about activating stronger trade defense tools have notably intensified. As the trade deficit with China continues to widen, countries such as France, Germany, and the Netherlands are pushing for faster and more targeted tariff measures.

The trade deficit with China continues to widen.

Data shows that the EU's trade deficit in goods with China reached €360.6 billion in 2025, a 15% increase from 2024. In the first four months of this year, this gap widened further by 10%.

Against this backdrop, French President Macron proposed last month that the EU establish a tool akin to a "European version of Section 301" to enable faster protective measures when unfair trade practices are identified.

Section 301 of the U.S. Trade Act of 1974 allows the United States to impose tariffs on trade practices it deems unfair or discriminatory. Reports indicate that this approach is also beginning to influence policy discussions in Europe as the Trump administration seeks to reshape its trade enforcement tools.

Multi-country support for faster tax authority access

It is reported that Germany, Poland, the Netherlands, and Belgium support Macron’s proposed new authority to enable the EU to impose tariffs on Chinese goods more swiftly.

Meanwhile, France, Italy, the Netherlands, and Lithuania, in a separate joint statement, called on the EU to explore new measures to limit overreliance on a single country, potentially including new tariffs or quota arrangements.

The European Union previously imposed additional tariffs on Chinese electric vehicles in 2024 and launched anti-dumping and anti-subsidy investigations against China. However, these investigations have progressed slowly, and some existing safeguard measures must apply globally, making it difficult to target a single country.

The European Union continues to prioritize dialogue for now.

Despite rising internal hardline voices, the EU has not yet shifted toward more aggressive actions. Reports indicate that the EU is concerned that rapidly escalating measures could provoke Chinese retaliation, so it will continue to prioritize dialogue to address differences in the short term.

Meanwhile, the EU is preparing to propose new legislation to encourage companies to diversify their key supply sources and reduce dependence on a single country. EU Commission President von der Leyen previously stated that past policies did not prompt companies to adjust their supply chains quickly enough.

Under the backdrop of high trade barriers in the United States, Chinese exports are accelerating toward other markets, increasing pressure on Europe. EU officials believe the existing global trade order is weakening, and Europe’s response to China’s trade practices remains too slow.

A senior EU diplomat said that discussions on the matter have continued since late last year, but the EU is still revisiting the same issues, indicating that while there is a growing sense of urgency internally, new tools still require time to be implemented.

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