An EU Trade War with China? |
An EU Trade War with China?
Is the EU economy now facing a trade war with Beijing, alongside the potential import halt on rare earths?
Thomas Kolbe | March 16, 2026
In an expedited procedure, the European Commission recently raised tariffs on ceramic and porcelain products from China. Additional tariff measures are also being considered to protect the European internal market from the Chinese export engine. Is the EU economy now facing a trade war with Beijing, alongside the potential import halt on rare earths?
Tensions in international trade policy are escalating on multiple fronts. After the U.S. Supreme Court initially declared the tariff regime implemented by President Donald Trump since April of last year unlawful, it appears the administration has explored new ways to stabilize its tariff policy going forward.
The signs on the international trade front continue to point toward turmoil. Not least, it is the ramped-up Chinese export machine that is increasingly in the crosshairs of U.S. protectionism and European defensive measures.
Beijing is using its massive export engine to offset deflationary pressures in its domestic economy -- a result of state-induced capital misallocation and a shrinking population. Through export subsidies and other support measures, the government seeks to stabilize employment while boosting industrial production.
However, this comes at the expense of trade margins and production capacities in other countries, which increasingly fall behind in competition with China.
It was predictable that the still high-purchasing-power internal market of the European Union would attract attention, given the U.S.'s hardline approach. Europe risks becoming a de facto unloading........