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Trade

China-EU Ties Reassessed Amid Escalating US Tariffs

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The US’ tariff threat has plunged the EU into a high-stakes balancing act. As Brussels’ re-ups its zero-for-zero tariff offer to the US amid President Donald Trump’s 90-day pause on higher-rate tariffs, trade talks with China have taken on a new urgency. Under discussion is a minimum price for Chinese electric vehicles (EVs) entering the bloc, replacing current tariff rates of up to 45.3%, and Chinese investment in the EU’s EV supply chain. But China’s overcapacity issues and market access barriers mean a push for “free and fair” trade still looks tricky from Brussels’ point of view. Beijing, for its part, will seek to forge a united front but recognizes that building — and maintaining — a renewed partnership with the EU won’t be easy. But for now, any discussions to boost trade are welcome.

Topics:
Trade, Tariffs, Low-Carbon Policy, Policy and Regulation, Electric Vehicles, Nature-Based Solutions, Emerging Technologies
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