FX.co ★ EU to impose trade restrictions on China by early 2027

The European Union is developing a package of protective measures to curb large‑scale imports of industrial goods from China. The restrictions will target the chemical industry, furniture manufacturing, and the engineering sector, Bloomberg reports, citing informed sources. The new set of tariffs or quantitative quotas is expected to be officially unveiled in the first quarter of 2027.

The initiative is part of Brussels’s broader strategy to reduce a record trade deficit with the PRC, which reached €360 billion ($404 billion) last year — more than $1 billion a day. A flood of cheap, subsidised goods from Asia is placing critical strain on European factories and threatening jobs. As European Commission President Ursula von der Leyen said, authorities have heard business calls and intend to firmly defend the single market under World Trade Organization rules, even if some measures must be implemented unilaterally.

As a model, Brussels is using the recent agreement on hybrid vehicles, which caps Chinese imports at 350,000 units per year for four years (with the limit indexed upward by 6% annually). That mechanism will be formalised in the coming weeks to take effect in December. Besides, similar quotas will cover suppliers from Japan and South Korea. Meanwhile, the Commission will present emergency trade‑response tools to block unfair imports by mid‑December.

Beijing has responded harshly to the EU’s protectionist plans: China’s Ministry of Commerce has already warned Europeans against pressure attempts and said China is prepared to defend national interests decisively. A further scheme of trade relations will be worked out by EU Trade Commissioner Maroš Šefčovič in consultations early next year, in which Brussels also plans to seek uninterrupted access to critical Chinese minerals and magnets in exchange for targeted tariff relief.