The European industrial sector is fighting a difficult war on two fronts. On one side, it faces a flood of cheap, often state-subsidized imports, particularly from China. On the other, it confronts an aggressive and unpredictable tariff regime from its traditional ally, the United States. This two-front conflict is squeezing the sector from both ends.
The challenge from the East is long-standing. Overcapacity in markets like China has led to dumping, where products are sold in the EU below their cost of production. This has eroded prices and profitability for European manufacturers for years.
The challenge from the West is newer but equally damaging. The US tariffs, originally intended as a weapon against China, are now inflicting severe harm on European firms. They are losing access to a key export market and being burdened with crippling compliance costs.
This puts EU businesses in an impossible position. They are being undercut at home by one global superpower and locked out abroad by another. The very policy the US claims is aimed at China is weakening the European industrial base, which is a key global competitor to China.
This two-front war stretches the resources and resilience of the sector to the breaking point. It explains the urgency behind the calls for “strong new trade measures” and domestic support. The industry feels it is under siege from both sides and needs its own government to act as a powerful defender.
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