Trade envoys from the European Union and China reached a preliminary agreement on Friday aimed at calming escalating trade tensions between the two economic powers. The deal could cut up to 50% of Chinese electric and plug-in hybrid vehicle imports to the EU while lowering tariffs for certain European goods exported to China, including car parts, olive oil and footwear, representing approximately 4 billion euros in export value. China’s global trade surplus reached $1.2 trillion in 2025, while the EU’s trade deficit with China stood at 103.3 billion euros in the second quarter. The agreement also includes measures to stabilize rare earth supply chains and will require approval from leaders of the 27 EU member states at a summit in Brussels next week.
Source: Read the original article
