All articles tagged with #eu trade
Brexit has weakened the UK economy, reducing GDP by about 6–8%, investment by 12–13%, and productivity by 3–4%, with labor shortages hitting curry houses that relied on Eastern European workers and a costlier, slower auto sector, as the government seeks closer EU ties to revive growth amid rising public frustration with Brexit.
The EU will broaden its use of trade defence tools by deploying import quotas and tariffs more systematically across whole sectors, such as chemicals, metals, and clean‑tech, to counter perceived unfair Chinese competition. The goal is a real rebalancing rather than breaking with China, but the blunt measures could affect all trading partners; discussions at a Friday meeting may include a proposed resilience tool to curb supplier concentration and a push to diversify European supply chains.
The European Union is drafting rules that would require companies to source critical components from at least three different suppliers, with a cap of roughly 30-40% from any single supplier, in an effort to diversify away from China. Targeting sectors like chemicals and industrial machinery, the plan aims to counter Beijing’s export controls and reduce Europe’s trade deficit by leveraging free-trade networks to broaden sourcing, while signaling possible punitive tariffs on Chinese chemicals and machinery as the proposal advances in early-stage discussions ahead of May and June meetings.
During a three-day visit to Beijing, Spain's PM Pedro Sánchez warns that the EU-China trade deficit is unsustainable, citing Spain's 42.3 billion euro deficit with China, and urges Beijing to open its market to European goods while seeking greater market access for agriculture and industry and more investment; he also positions Spain as a gateway to Europe.
Downing Street says nothing is off the table if the US does not honour the current UK‑US tariff deal, but stresses no one wants a trade war, as Washington moves to a 15% global tariff that would largely bypass the sector-specific deals with the UK; talks remain constructive and all options are on the table to protect British business, while the EU pauses its deal and analysts warn of potential UK damage if the broader tariff goes ahead. The policy uses Section 122 of the 1974 Trade Act, with exemptions for some items, and officials urge clarity on how UK exports will be treated.
The European Commission says it is ready to implement the EU-Mercosur trade deal despite the European Parliament voting to refer the pact to the European Court and delay its adoption.
Amid strained US-Canada relations under Trump, Canada is rapidly diversifying its trade away from the US, focusing on Europe, the Middle East, China, and India, with a new trade strategy expected soon to reduce dependence on the US and adapt to a shifting global economic landscape.
In 2025, Trump's return to the White House led to a significant increase in US tariffs, impacting global trade, but the economy showed resilience and global markets remained relatively stable. Key issues for 2026 include legal challenges to tariffs, ongoing US-China trade negotiations, and the future of trade agreements with Canada and Mexico, with uncertainties about the continuation of tariffs and trade policies.
The closure of Poland's border with Belarus has halted a crucial €25 billion Chinese export route to the EU, impacting trade and e-commerce deliveries, amid geopolitical tensions and upcoming high-level talks between China and Poland to resolve the issue.
EU trade ministers strongly oppose US President Trump's 30% tariffs on the EU, considering them 'absolutely unacceptable,' and are preparing countermeasures while seeking a negotiated trade deal, amid ongoing trade tensions and potential global economic impacts.
EU trade chief Maros Sefcovic indicated that US tariffs threatened to make ongoing trade negotiations almost impossible, despite the EU's preference for reaching a deal. While some EU countries call for tougher retaliatory measures, others advocate caution due to reliance on US defense. The EU is preparing for all outcomes, including potential countermeasures, amid rising tensions over Trump's tariff threats.
US President Donald Trump announced a 30% tariff on all EU goods starting August 1 due to stalled trade negotiations, with similar tariffs on Canadian and Mexican imports, prompting EU warnings of countermeasures and heightened tensions in international trade relations.
China has offered expedited export licenses for rare earth elements to EU and US auto companies, easing concerns over supply shortages that threaten automotive production, amid ongoing trade tensions and export restrictions. This move is seen as a diplomatic gesture and a response to previous tariffs, but industry experts remain cautious about the practical implementation and broader supply chain impacts.
President Trump unexpectedly escalated a trade war with the EU by threatening 50% tariffs, then paused the threat after negotiations, leading to market volatility and a tense six-week negotiation period, with both sides expressing cautious optimism and strategic posturing.
Stock markets rose after President Trump delayed tariffs on the EU, boosting investor confidence and lowering U.S. Treasury yields, though trade tensions remain a concern amid ongoing negotiations and potential future tariffs.