The European Union’s trade deficit with China surged to €36.5 billion in July 2026, as imports from the Asian giant continued to far outpace exports. According to Eurostat, EU imports from China increased by 8% year-on-year, reaching €53.9 billion, while exports declined by 1.6% to €17.4 billion, exacerbating the trade imbalance.
This growing deficit represents a significant jump from €32.3 billion recorded in July of the previous year, highlighting the EU’s ongoing struggle to balance its trade relationship with China. From January to July 2026, the cumulative trade deficit amounted to approximately €234 billion, underscoring the persistent disparity in goods trade between the two regions.
The widening gap has prompted European officials to explore measures aimed at rebalancing trade dynamics, particularly targeting imports in strategic sectors such as hybrid vehicles and chemicals. The surge in imports of hybrid vehicles is partly attributed to the EU’s 2024 introduction of additional tariffs on Chinese electric vehicles, which did not encompass hybrid models.
Efforts to address trade tensions include seeking voluntary limits on Chinese hybrid vehicle exports. These discussions are expected to be a focal point in upcoming EU-China negotiations, as Brussels aims to boost European exports and reduce reliance on Chinese goods in critical sectors.