Live Markets: Talks, tariffs, and still no results?

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09/07/2026 12:32

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TALKS, TARIFFS, AND STILL NO RESULTS?
European policymakers are once again trying to address EU-China trade troubles and competition worries. But it’s still not necessarily looking all that promising.
Two new measures were announced by European policymakers recently - but there are questions surrounding both of them, according to Andrew Kenningham, chief Europe economist at Capital Economics.
The first measure effectively foresees the European Commission being more proactive and strategic in using existing tools, as well as developing new ones, he explained.
But a lot will depend on the details, Kenningham said. “The broader question is to what extent the EC tariffs other major products – and whether the EC takes the lead in identifying markets that require protection,” he noted, adding that new tools will also take time to implement.
The second measure is a new trade and investment focused dialogue between the EU and China, Kenningham pointed out - but, he argued it “is unlikely to achieve major breakthroughs.”
So where does that leave things?
Drastic measures like across-the-board tariffs, or bans of specific products aren’t on the cards, Kenningham said.
“The most likely scenario over the next year or two is a significant, but gradual, increase in tariffs and other trade defence measures,” he argued.
“This may help to slow the pace at which China is gaining market share, but it is not likely to reverse it or to relieve the pressure on European manufacturers.”
(Sophie Kiderlin)
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