The European Union blinked. Facing a goods trade deficit with China that reached €359 billion in 2025, roughly €1 billion pouring out every single day, EU leaders gathered at their June 18-19 summit to discuss punitive measures against Beijing. They walked away with a plan to keep talking about it.
The European Commission had already laid the groundwork for confrontation. On May 29, the Commission publicly declared that the EU-China trade relationship is “not sustainable.”
Why Brussels pumped the brakes
China canceled high-level diplomatic meetings with the EU earlier in June, a move widely interpreted as a warning shot. Beijing has also signaled that retaliation is on the table if Europe moves forward with aggressive trade measures.
France, Italy, and Spain have been pushing for stronger action. These are countries watching their domestic manufacturers get undercut by Chinese imports, particularly in sectors where Beijing has built enormous production capacity. Electric vehicles, solar technology, chemicals, metals: the list of industries feeling the squeeze is long and getting longer.
