EU trade deficit with China shrinks to lowest level since 2021

“The US shutting China out already will undoubtedly benefit the EU, as long as the US remains open to European imports,” said Sander Tordoir at the Centre for European Reform think-tank. “The EU is ahead of the US on green tech manufacturing and exports.”

He added that European carmakers had been helped by the extension of tax breaks under the US Inflation Reduction Act to imported electric vehicles if they are bought by businesses that lease them out.