- Europe
- News Desk
- Source: European Commission https://ec.europa.eu/commission/presscorner/detail/en/speech_26_2252
The European Union's trade deficit with China reached almost 197 billion euros in the first half of 2025 and could exceed the 2022 record of 397 billion euros if the current pace continues, European Commissioner for Trade and Economic Security Maroš Šefčovič said in Dublin on Friday at a press conference following an informal Foreign Affairs Council on trade. Šefčovič said rebalancing trade with China is now the EU's central workstream.
Key facts
What did Šefčovič say about EU-US trade?
- EU exports to the United States grew 3.5% in 2025 to 555 billion euros, according to Šefčovič, and have run above the 2024 monthly average in recent months.
- The EU's trade deficit with China stood at almost 197 billion euros in the first half of 2025, putting the bloc on course to pass its 2022 record of 397 billion euros.
- In 2025, EU goods exports to preferential trade partners rose 3.3%, against 0.6% to partners without a free trade agreement.
- EU agri-food exports to preferential partners grew 4.6%, offsetting a 3.6% decline with non-FTA partners.
- Šefčovič said the Commission will table the DiversifyEU package in December and will propose new instruments to strengthen its trade defence toolbox.
Speaking after meetings hosted by Irish minister Helen McEntee, Šefčovič said continued engagement between Brussels and Washington has stabilised the trade relationship and is producing results. He pointed to the 3.5% rise in EU exports to the US in 2025, reaching 555 billion euros, with recent monthly flows above the 2024 average.
He said the EU is delivering on the EU-US Joint Statement, including on tariff reductions, on energy purchases and investments that have gone beyond target, and on simplification measures that also benefit US businesses. He added that outstanding issues such as metals and derivatives still need to be addressed, and that cooperation should continue on shared interests including critical minerals. Šefčovič said he had stressed these points most recently to US Trade Representative Ambassador Greer in Milwaukee. How does Brussels plan to rebalance trade with China?
Šefčovič said the European Council has given the Commission a clear mandate on China, and that the next steps are already under way. A safeguard on hybrids and plug-in hybrids will be initiated soon, he said, and further priority sectors will be identified using the Import Barometer, which tracks sustained import surges that harm EU industry.
Engagement with Beijing is continuing, with Šefčovič's team due to meet Chinese counterparts next month. He also said the EU is working to reduce overdependencies in strategic sectors and the risk that such dependencies could be weaponised. In December, the Commission will table the DiversifyEU package and propose ways to make trade defence tools more effective, including by adding new instruments to the toolbox. What do the EU's trade deals deliver?
On free trade negotiations, Šefčovič argued that existing agreements make a compelling case for pressing ahead. He said EU goods exports to preferential partners grew 3.3% in 2025, compared with 0.6% for partners without a free trade agreement. Agri-food exports to preferential partners rose 4.6%, offsetting a 3.6% decline in trade with non-FTA partners.
Šefčovič thanked McEntee for organising what he called timely exchanges, and took questions after his remarks. The December DiversifyEU package and the planned safeguard on hybrid vehicles are the next concrete milestones in the Commission's trade agenda.
Source: European Commission
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