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The European Commission has unveiled a new system designed to monitor imports into the EU using customs data. This initiative is expected to be enhanced with contributions from member states and EU industries, allowing for the identification of sudden increases in imports from foreign nations in response to US tariffs affecting global trade.
“The current turbulence in the global trading landscape has heightened the risk of detrimental trade diversion,” stated EU Trade Commissioner Maroš Šefčovič. He emphasized, “With this new import surveillance tool, we are reinforcing our ability to safeguard our interests and curb surges in diverted imports to our market.”
On April 7, the Commission announced the establishment of a task force aimed at monitoring fluctuations in imports of goods entering the EU, effective from January 1, 2025.
One of the primary concerns involves potential diversion of products from China. During the peak of the trade tensions between the US and China in April, the US imposed tariffs as high as 145% on Chinese goods. However, in May, both countries reached a temporary truce that reduced these tariffs on Chinese products to 30%.
Recent data from Chinese customs reveals that exports from China to the EU surged by 8.2% in April 2025 compared to the previous year. Notably, exports to Germany saw a remarkable increase of 20.4%, while the Netherlands, Italy, and France experienced growth rates of 5.6%, 4.7%, and 2.6% respectively. In stark contrast, Chinese exports to the US dropped by 20% during the same period.
Additionally, there’s been a marked rise in Chinese exports to Southeast Asian countries, with Thailand reporting a 28% increase and Indonesia experiencing a 37% boost.
To shield itself from excessive trade diversion, the Commission can implement safeguards that allow the EU to temporarily limit the imports of certain products which might distort the market. Furthermore, anti-dumping duties can be imposed if a foreign nation exports a product at prices lower than those on its domestic market.
Trade expert Simon Evenett, affiliated with the St. Gallen Endowment for Prosperity Through Trade in Switzerland, has gathered data highlighting significant price declines for Chinese automotive and petroleum products from January to April 2025. He also noted a similar trend in the falling prices of medicines and ships exported from China worldwide during this timeframe.
Photo credit & article inspired by: Euronews
