EU-China Tariff Updates: April 28, 2025 – Trade War Developments and Economic Impact

As April 28, 2025, unfolds, the European Union (EU) and China are navigating a turbulent trade landscape, shaped by U.S. tariffs, retaliatory measures, and shifting economic strategies. While China has raised duties on U.S. imports to 125%, the EU is preparing countermeasures against U.S. steel and aluminum tariffs. Meanwhile, China has quietly rolled back tariffs on some U.S. semiconductor products, signaling a potential shift in trade policy.

This article provides a comprehensive analysis of the latest EU-China tariff developments, including China’s economic response, EU trade negotiations, stock market reactions, and long-term trade strategies.

China’s Response to U.S. Tariffs

China’s Tariff Measures

China has raised duties on imports of U.S. goods to 125%, escalating the trade war further.

China’s retaliatory tariffs target agriculture, technology, and industrial goods.
China is promoting the use of the yuan in international trade to reduce dependence on the U.S. dollar.

China’s Economic Strategy

China has taken steps to strengthen its economic independence:

Gradually cutting imports of U.S. grains and farm products, reducing reliance on American agricultural exports.
Providing additional support for tariff-hit exporters, ensuring businesses can withstand trade disruptions.
Quietly rolling back tariffs on some U.S. semiconductor products, easing pressure on its tech sector.

China’s Diplomatic Moves

China has publicly denounced U.S. tariffs, calling them an abuse of trade policy.

China’s Foreign Minister Wang Yi has urged the EU to act as a counterbalance to U.S. trade aggression.
China has appointed a new trade envoy, signaling a more aggressive stance in negotiations.

EU’s Trade Strategy and Countermeasures

EU’s Response to U.S. Tariffs

The European Union is preparing retaliatory measures against U.S. steel and aluminum tariffs, targeting €18 billion worth of U.S. exports.

Reinstating paused 2018/2020 tariffs, signaling a firm stance against U.S. trade policies.
Strengthening trade agreements with China and Southeast Asia, aiming to reduce reliance on U.S. markets.

EU-China Trade Relations

EU officials have emphasized the need for stronger trade partnerships with China, with Foreign Minister Wang Yi calling on European leaders to safeguard the multilateral trading system.

Italy’s Prime Minister Giorgia Meloni met with Trump, signaling a potential thaw in transatlantic tensions.
EU leaders are working to finalize trade agreements with China, ensuring economic stability amid U.S. tariff uncertainty.

EU’s Internal Trade Adjustments

The EU has updated its commodity code structure to maintain dynamic alignment with trade partners, ensuring smooth tariff implementation.

New commodity codes have been introduced, replacing outdated classifications.
Sanctions measures against Syria have been adjusted, reflecting broader geopolitical shifts.

Stock Market Trends and Economic Outlook

Market Reaction to Tariff Uncertainty

Financial markets have responded cautiously to EU-China trade developments, with investors closely watching negotiations.

Cargo shipments between the U.S. and China have dropped by an estimated 60% since April, raising concerns about supply chain disruptions.
Retailers like Walmart and Target have warned of empty shelves and rising prices, as businesses struggle to restock inventory.
Experts predict major supply shortages and layoffs in trucking, logistics, and retail sectors if the tariff war continues.

European Markets and Trade Developments

European shares nudged higher on Monday, as investors awaited further tariff updates and economic data.

The pan-European STOXX 600 index rose 0.5%, marking its second consecutive weekly gain.
China exempted some U.S. goods from its 125% tariffs, signaling concerns about the trade war’s fallout.

Conclusion

April 28, 2025, marks a critical moment in EU-China trade relations, as China raises tariffs on U.S. imports, the EU prepares countermeasures, and global markets react to trade uncertainty. With China quietly rolling back semiconductor tariffs and EU leaders working to finalize trade agreements, businesses and policymakers must adapt to shifting negotiations and emerging trade alliances.