EU and China Launch 3-Month Trade Talks to Avert a €360 Billion Tariff War

EU and China Launch 3-Month Trade Talks to Avert a €360 Billion Tariff War

The European Union and China have kicked off formal trade talks to avoid a full-blown tariff war, aiming to fix a massive €360 billion trade gap in just three months.

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The European Union and China have agreed to hold three months of formal talks to try to prevent a trade war, launching a new high-level consultation mechanism in Brussels on June 29 [185169][187484]. The discussions aim to address the EU’s €360 billion annual trade deficit with China, where the bloc imports far more goods than it exports [185169].

Tensions have been rising after the EU announced plans to impose higher tariffs on Chinese-made electric vehicles, claiming China unfairly subsidizes its EV industry [187372][184420]. China responded by launching an investigation into EU pork and dairy products, warning that such measures could damage global supply chains [187372][184420].

The new ministerial-level platform includes four initial workstreams focused on balancing trade and investment, as well as resolving export-related grievances [184848]. EU officials stressed that progress must be measurable and concrete within months, setting a firm deadline of October for “tangible results” [184848].

Chinese companies are pushing for dialogue to resolve the growing tensions, with the China Council for the Promotion of International Trade warning that escalating disputes could hurt both economies [185624]. The talks are seen as a key step to avoid escalating tensions that could disrupt global supply chains [185169].

Sources

EU and China start 3-month talks to avoid trade war over €360bn gap #185169China and EU launch new trade talks to avoid tariff war #187484EU and China on Collision Course? 5 Key Facts #187372EU-China trade war heats up: Brussels targets Chinese electric cars #184420China’s Businesses Call for Talks to Solve EU Trade Disputes #185624EU to China: Fix Trade Imbalance by October or Else #184848

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