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Economy
Jun 15, 2026
Analyzed by GPT OSS 120B

EU-China Trade Deficit Hits Record €1 bn a Day, Sparking Policy Debate

AI Summary
Eurostat data show the EU’s trade gap with China surged to a historic €31.9 bn in April, averaging €1 bn a day. The widening imbalance is prompting EU leaders to consider targeted measures amid fears for Europe’s industrial backbone.

The European Union’s trade gap with China has ballooned to a historic €1 bn (£0.8 bn) each day, according to Eurostat data for April, raising alarms about the sustainability of Europe’s industrial base.

EU‑China Trade Gap Surges to Record Levels in April

Eurostat reports that the difference between EU imports from China and exports to China reached €31.9 bn in April, equivalent to a daily shortfall of €1 bn. The figure comes as EU leaders prepare for a Thursday summit to discuss measures against the widening imbalance, amid concerns over the influx of subsidised Chinese electric vehicles and component imports.

€31.9 bn Imbalance: Numbers Behind the Deficit

  • Total trade deficit in April: €31.9 bn
  • Average daily shortfall: €1 bn (≈ £0.8 bn)
  • Projected May‑June deficit: likely to stay above €1 bn per day according to Rafael Jimenez Buendía

Implications for Europe’s Industrial Backbone

Alexander Julius, president of Eurometal, warned that reliance on Chinese supplies could allow Beijing to dictate component availability, pricing and quantities, threatening sectors from steel to defence. Trade expert Rafael Jimenez Buendía echoed the view, noting that customs data already show shipments “still at sea” that will push the deficit higher in the upcoming July‑August releases.

Policy Paths and Outlook for the Next Quarter

European officials, including Trade Commissioner Maroš Šefčovič, have ruled out broad tariffs due to political complexity. Analysts favour targeted measures such as:

  • Import quotas on Chinese chemicals and hybrid vehicles
  • Strengthening anti‑subsidy investigations for electric‑car components
  • Co‑ordinated G7 dialogue led by France’s Emmanuel Macron to seek a cooperative approach

With China absent from the negotiation table, immediate breakthroughs appear unlikely, but acknowledgment of the problem is seen as a first step toward tougher EU trade policy.