The European Union is preparing sweeping protectionist measures to curb a flood of Chinese goods in the chemicals, furniture, and machinery sectors, Bloomberg reports. The move, modeled in part on US trade pressure, is intended to rebalance trade flows and shield domestic manufacturing. According to people familiar with the situation, the package of restrictions and tariffs could be formally unveiled as early as the first quarter of 2027.
Brussels plans to lean on recent experience managing hybrid‑vehicle imports when it negotiated a cap of 350,000 cars per year with Beijing. The European Commission is weighing hard quantitative or tariff quotas that would impose hefty levies on shipments above set limits. The aim is to rein in a ballooning trade deficit with China, which reached €360 billion, or $404 billion, last year, while trying to avoid a full‑blown trade war.
Beijing’s response was combative. The Chinese commerce ministry warned that the EU “cannot fantasize about gaining benefits by exerting pressure” and announced plans for countervailing anti‑dumping probes into European exports. IMF Managing Director Kristalina Georgieva weighed in on growing tensions, emphasizing that rebalancing would require China to boost domestic demand, the United States to cut sovereign debt, and Europe to press ahead with structural reforms and investment.
At the same time, Beijing is deepening eastward trade ties as relations with the West cool. According to Russian President Vladimir Putin, Russia and China are set to post a record bilateral trade total in 2026, underscoring how geopolitical realignments are reshaping global commerce.