The European Union’s trade deficit with China surged to €36.5 billion in July 2026, as the bloc imported significantly more goods from China than it exported, according to Eurostat data. This marked an increase from the €32.3 billion deficit recorded in July 2025, highlighting a growing imbalance in trade relations.
In July alone, EU imports from China rose by 8% year-on-year to reach €53.9 billion, while exports to China declined by 1.6% to €17.4 billion. Over the first seven months of 2026, the trade deficit accumulated to approximately €234 billion, emphasizing the persistent disparity in the exchange of goods between the two economies.
The widening deficit has prompted European officials to explore strategies for achieving a more balanced economic relationship with China. Measures under consideration include targeting imports in sectors such as hybrid vehicles and chemicals, where the imbalance is particularly pronounced.
One area of focus is the import of hybrid vehicles, which have seen a sharp increase since the EU imposed additional tariffs on Chinese electric vehicles in 2024. Unlike electric models, hybrid vehicles are subject to different tariff treatments, prompting EU officials to consider voluntary export limits from China as a potential solution to trade tensions.
Trade relations with China are expected to remain a central topic in forthcoming EU-China discussions. As Brussels aims to boost European exports and lessen its reliance on Chinese goods, particularly in strategic sectors, the negotiations will likely focus on finding pathways to greater economic equilibrium.