If China will be shipping less to the US then the EU will be faced with a wave of Chinese goods.
China’s export to the EU exceeded imports from the bloc by over 300 billion euros, equivalent to almost $332 billion, in 2024…The EU has highlighted that burgeoning trade deficit as problematic even as it has defended its large goods surpluses with the US…
As the trade confrontation between the US and China escalates, Chinese companies will come under increased pressure to dump their excess production in Europe…
“These goods showing up in Europe could have both a deflationary and a contractionary impact because they would crowd out local products,” European Central Bank executive board member Piero Cipollone said in a February interview published on the ECB’s website.
DB2