Brussels is weighing the use of tariffs or quotas on Chinese machinery, furniture, and chemicals to protect domestic producers from low-cost imports. The proposed safeguard measures could be presented as soon as the first quarter of 2027 and would allow the bloc to constrain specific sectors of trade without needing the formal agreement of the Chinese government.
The curbs aim to shield struggling European manufacturers, such as furniture makers who have requested the limits, and narrow a trade gap with China that has reached $404B. In response, China’s Ministry of Commerce warned it would take all necessary measures if the restrictions are discriminatory. The EU’s broader strategy also includes a request for Beijing to ease export restrictions on critical minerals and rare earth magnets, while urging European companies to diversify their supply chains away from Chinese suppliers.