Europe’s Trade Deficit with China Hits €1 Billion Per Day—Is a Trade War Inevitable?

Brussels, Sunday, 21 June 2026.
Europe’s trade deficit with China surged to a record €360.6 billion in 2025, deepening by 10% in early 2026. With daily losses nearing €1 billion, the EU is abandoning diplomacy for Trump-style tariffs, risking a full-blown trade war. China’s dominance in EVs, steel, and solar panels—backed by state subsidies—has left European industries struggling. Now, leaders warn of a ‘world of wolves,’ as retaliatory measures loom, threatening supply chains and inflation. Will Europe’s bold shift reshape global trade—or backfire?