In recent years, the global economic order has been severely shaken by the rise of protectionist tendencies among major powers. Under the leadership of Donald Trump, the United States (US) not only shaped its foreign trade policies as an economic war specifically against China, but also triggered a multi-layered transformation process that affected key global trade actors such as the European Union (EU).
On April 2, 2025, Trump initially set tariffs on China at 34%, but over time, this rate was raised to 104%, then 125%, and ultimately considered to increase to 145%[1]. However, these developments should not be seen solely as a bilateral confrontation between Washington and Beijing. They should also be considered part of a systematic challenge to the multilateral trading system.
The Trump administration did not exclude the European Union (EU) from its trade policies. Currently, the EU is subject to US tariffs under three main categories: 25% tariffs on steel and aluminum exports, 25% on automobiles, and 20% on other products. Despite temporary pauses in the “reciprocal tariff” policies, sectoral taxes and a fixed 10% minimum tariff continue to be enforced[2]. This situation has made the European economy vulnerable not only to China, which was Trump’s direct target, but also to the US, leading the EU to reassess its strategic trade position.
The multifaceted pressure created by Trump’s aggressive trade policies is bringing China and the EU closer together on both economic and diplomatic fronts. A recent example of this process occurred on April 8, 2025, during a phone call between European Commission President Ursula von der Leyen and Chinese Premier Li Qiang. Von der Leyen called for a negotiated solution to the problems caused by the comprehensive tariffs imposed by the US. These statements demonstrate Europe’s commitment to the principle of multilateralism in the face of unilateral approaches. This position reflects not only Europe’s economic interests but also its effort to preserve the rule-based structure of global trade.
In the European Commission’s statement, it was emphasized that the EU and China, as “the world’s two largest markets,” have a responsibility to support a fair, equal, and transparen trade system.[3] This statement suggests that the EU aims to go beyond being a regional power and position itself as the normative carrier of the global economic order. However, behind
Europe’s normative stance lie concrete economic concerns. Specifically, due to the US’s high tariffs, China’s low-cost production is shifting and moving towards European markets, presenting a significant competitive threat for the EU. This potential “trade diversion” could create competitive pressure that severely challenges domestic producers in Europe.
For this reason, the proposal to establish a mechanism to monitor potential trade diversions between the EU and China has been brought up. This proposal not only aims to ensure market stability in the short term but also seeks to prevent structural mismatches in the long term. This step can also be seen as the beginning of strategic economic coordination between China and the EU.
Europe views China not only as an alternative trade partner but also as an actor responsible for the sustainability of the global economic order. This approach lays the foundation for the establishment of more permanent and institutionalized cooperation mechanisms between the two sides.
Moreover, on April 8, 2025, the latest meeting between Chinese Minister of Commerce Wang Wentao and EU Commissioner for Trade and Economic Security Maroš Šefčovič further underscored the determination of both sides to deepen their trade relations. China expressed its readiness to cooperate with the EU in investment, trade, and industrial sectors at a more advanced level, while also demonstrating a strong stance in defending the multilateral trade system based on World Trade Organization (WTO) rules[4]. This approach is of critical importance not only in terms of economic cooperation but also for the future of the global trading system
China’s defense of the multilateral trade system by referencing the WTO highlights the need for international trade to be conducted not only on the basis of mutual interests but also within a framework based on global trade rules. The EU, on the other hand, aims to protect its own industries while remaining committed to the rules of global trade. The cooperation between these two major economic players envisions steps toward trade liberalization and ensuring that trade operates in a fair and balanced manner according to the interests of both sides.
On April 10, 2025, the EU and China reached an agreement to consider setting a minimum price instead of imposing high tariffs on Chinese-made electric vehicles, which had been implemented the previous year. According to the European Commission spokesperson, a consensus was reached between EU Trade Commissioner Maroš Šefčovič and Chinese Minister of Commerce Wang Wentao regarding the establishment of minimum prices. This development demonstrates the determination of both sides to propose an alternative solution to replace the current tariffs.
In 2024, the 45.3% tariff imposed by the EU on Chinese-made electric vehicles posed a significant obstacle, especially for China’s major automotive manufacturers.[5] While this tariff was a measure to protect European domestic producers, it also led to a contraction of the market and increased competition for Chinese producers. The new agreement between the EU and China, though viewed as a step toward trade liberalization, also acts as a response to the US’s unilateral and protectionist tariffs.
The minimum price commitment agreement between China and the EU aims not only to liberalize trade but also to create a new balance in global trade and offer an alternative solution to the US’s tariffs. Through this new approach, the EU is working to establish a more independent trade framework with China while also implementing a strategy to position itself as a balancing force in global trade. This agreement demonstrates the EU’s desire to operate more independently in global trade and produce alternative solutions to counter US unilateral policies. This development is seen as a significant step, not only in terms of economic cooperation but also for the sustainability and stability of global trade.
In conclusion, the US’s protectionist trade policies are affecting not only the relationship between China and the US but also the economic cooperation between the EU and China. By advocating for multilateralism in contrast to the US’s unilateral approaches, the EU is strengthening its strategic relationship with China. The agreements between the EU and China aim to liberalize trade and strengthen a system based on global trade rules. The cooperation between the EU and China stands out as an important step in balancing and ensuring the sustainability of global trade.
[1] Trump tariffs updates: China hit with 145% duties as Wall Street slides”, Al Jazeera, https://www.aljazeera.com/economy/liveblog/2025/4/10/trump-tariffs-live-stocks-skyrocket-as-many-duties-paused, (Acess Date: 11.04.2025).
[2] “EU pauses retaliatory tariffs following Trump’s trade U-turn”, CNN, https://edition.cnn.com/2025/04/10/business/eu-pauses-retaliatory-tariffs/index.html, (Acess Date: 11.04.2025).
[3] “EU’s von der Leyen urges China to ensure responsible tariff response”, Reuters, https://www.reuters.com/world/eus-von-der-leyen-calls-china-ensure-responsible-tariff-response-2025-04-08/, (Erişim Tarihi: 11.04.2025
[4] China and EU discuss trade in response to U.S.’ punitive tariffs”, Reuters, https://www.reuters.com/markets/china-eu-discuss-trade-resume-ev-talks-2025-04-10/, (Access Date: 11.04.2025).
[5] “EU, China will look into setting minimum prices on electric vehicles, EU says”, Reuters, https://www.reuters.com/business/autos-transportation/eu-china-start-talks-lifting-eu-tariffs-chinese-electric-vehicles-handelsblatt-2025-04-10/, (Access Date: 11.04.2025).
