EU Leaders Agree to Strengthen Trade Defenses Against China

European Union leaders agreed during a summit in Brussels on June 18 to develop strengthened trade defenses to combat a growing goods trade deficit with China. The bloc's trade deficit reached approximately 360 billion euros in 2025, prompting leaders to task the European Commission with expanding its trade defense toolbox to protect industrial interests and derisk the economy.

While the summit established a consensus on the need for these measures, member states remain divided on implementation. Emmanuel Macron, the President of France, advocated for a tougher approach, including a European equivalent of the U.S. Section 301 tool to impose sector-specific tariffs. Conversely, Germany and Spain expressed caution due to their significant investment ties and economic exposure to China.

The EU has already initiated several anti-dumping investigations and imposed tariffs on Chinese electric vehicles. These actions triggered retaliation from Beijing, which targeted European imports of cognac, dairy, and brandy. Despite these tensions, the EU intends to pursue constructive dialogue with China to balance its economic security with trade stability.