EU rules on small packages and steel eye huge trade imbalance with China

Key Points:

• The European Union introduced a 3 euro customs duty on small parcels under 150 euros, primarily targeting the surge of low-value e-commerce imports from China, which have disadvantaged EU retailers and raised safety and environmental concerns.
• New steel import rules set tariff-free quotas and impose a 50% duty on excess imports of certain steel types to protect EU steel plants and jobs from global overcapacity, with a focus on preventing circumvention by tracing production stages.
• The EU’s trade deficit with China reached approximately 360 billion euros in 2025 and continues to rise, prompting measures amid concerns over China’s subsidized steel production and dominant share in low-value e-commerce parcels.
• China has opposed the EU’s new steel import regulations, warning of firm responses to what it views as discriminatory measures, while experts warn of a growing global backlash against China’s export surge, termed “China Shock 2.0.”
• EU officials emphasize the need for fair competition and a level playing field, with ongoing talks aimed at rebalancing trade relations by October, despite China’s confidence in its leverage over European markets.