The European Union is bleeding roughly €1 billion per day in its goods trade deficit with China. That’s not a metaphor. It’s the actual math, and it’s forcing Brussels into what may become the most consequential trade policy shift in a generation.
EU leaders are set to debate a sweeping package of trade defense measures at a summit on June 18, 2026. The toolkit under discussion includes tariffs, import quotas, anti-dumping investigations, procurement rules, and subsidy regulations, all aimed at curbing what officials view as Chinese trade dominance fueled by state-backed overcapacity.
The numbers tell a brutal story
The EU-China trade deficit hit approximately €360 billion for the full year of 2025. The first quarter of 2026 alone registered a €98 billion deficit, the highest since late 2022. April 2026 added another €31.9 billion to the tally.
Every single one of the 27 EU member states reported a trade deficit with China in 2025. That was a first. Not one country managed to sell more to China than it bought.
