The European Commission is closely monitoring containerized imports from China due to concerns that the high U.S. tariffs will force a redirection of Trans-Pacific trade flows and flood Europe with Chinese goods.

Although the EU has not seen import volumes rise beyond normal seasonal patterns, a new “Import Surveillance Task Force” has been launched to track any unusual trade activity that might affect European Union industry.

The U.S. imposed a 145% tariff on Chinese imports starting April 9, which caused a rush to ship goods early, followed by a wave of canceled cargo bookings. Some shippers are requesting containers already in-gated at Chinese origins not be loaded on ships, while others have asked that containers be pulled completely from port, according to a Trans-Pacific carrier executive.

Ships leaving China for the U.S. in the coming weeks are expected to be half-full as the cancellations continue, with significant blank sailings likely on the Trans-Pacific. Carriers are looking for other markets to utilize their capacity, and Southeast Asian origins are seeing a surge in ship utilization as shippers frontload exports from those nations to the U.S. to take advantage of a 90-day reprieve on reciprocal tariffs.

Chinese manufacturers are urgently looking for alternative markets to sell their surplus inventory, with Europe being a prime target due to its large consumer base. The European Commission is shoring up its defenses against any influx of cheap Chinese products that could displace European-made goods.

Gill said if the new monitoring mechanism detected an increase in Chinese imports that could harm European businesses, the EU “will be ready to respond appropriately.” Measures could include launching a safeguard investigation and using trade defense tools to limit damage to EU industry.

Source: Journal of Commerce