The European Union is bleeding money in its trade relationship with China, and the patience of member states is running out. The bloc’s goods trade deficit with China hit a record €98 billion in the first quarter of 2026 alone, a pace that works out to roughly €1 billion per day disappearing into the red.
Five countries want action now
In late May, France, Italy, Spain, the Netherlands, and Lithuania submitted a joint paper calling for immediate emergency tariffs, broader safeguards, and new rules designed to stop Chinese exporters from circumventing existing duties. A critical meeting on May 29 set the tone, with officials describing the current EU-China trade relationship as “not sustainable.” The proposals were further discussed at the EU leaders’ summit on June 18-19.
The European Commission is now actively engaged with member states on implementing enhanced trade defense mechanisms. The toolkit under discussion is extensive: import duties, safeguard measures, anti-coercion instruments, procurement restrictions, and regulations targeting foreign subsidies.
The EU already has 172 anti-dumping and anti-subsidy measures in place, with over 75% of them targeting Chinese imports. But the five-country coalition argues these aren’t being applied fast enough or broadly enough. Tools like the Anti-Coercion Instrument remain largely unused despite escalating tensions.
