France and Germany urge EU to adopt rapid-response trade tool
French President Emmanuel Macron and German Chancellor Friedrich Merz warned that the EU’s trade deficit with China is expanding by about 1 billion euros per day. They urged the European Commission to create a rapid-response mechanism modeled on America’s Section 301 duties to counter unfair trade practices faster. They argued the EU’s current Anti‑Coercion Instrument requires a months‑long investigation and majority government approval before it can be used.
Macron and Merz said the EU’s trade deficit with China has reached roughly 1 billion euros ($1.125 billion) each day, driven by a surge of Chinese imports.
European Trade Commissioner Maroš Šefčovič is set to travel to Beijing on Thursday for the final round of rebalancing talks that began four months ago, with outcomes to be reviewed at an EU leaders’ summit in Brussels on October 15‑16.
The proposed rapid‑response tool would bypass the lengthy Anti‑Coercion Instrument process, allowing the Commission to act quickly without waiting for a months‑long probe or a unanimous member‑state vote.
Macron and Merz also called on the Commission to diversify Europe’s supply chains to lessen dependence on Chinese goods.
“Without delaying the full use of the existing set of instruments, we need a comprehensive framework to complement our toolbox with new legal instruments—in a lean and non-bureaucratic way,” Emmanuel Macron, President of France, and Friedrich Merz, Chancellor of Germany said.
Days ahead of a scheduled EU‑China trade meeting, Macron and Merz warned that Chinese imports are threatening European manufacturers and the broader economy. They noted that US Section 301 tariffs have already redirected Chinese goods toward Europe, worsening the bloc’s imbalance.
What we know
EU’s trade deficit with China growing by 1 billion euros per day
European Trade Commissioner Maroš Šefčovič will travel to Beijing on Thursday
Results of EU‑China trade talks to be discussed at EU leaders summit in Brussels on Oct. 15‑16
Proposed rapid‑response mechanism modeled on US Section 301 duties would speed up Commission’s process for unfair trade practices
EU’s existing Anti‑Coercion Instrument requires a months‑long investigation and majority government approval before use