Rethinking EU Tariffs on China: Objectives and Trade-Offs

Andreas Baur () and Lisandra Flach ()

No 87, EconPol Policy Brief from ifo Institute - Leibniz Institute for Economic Research at the University of Munich

Abstract: Key MessagesEU tariffs on China are no silver bullet. They carry economic costs and unintended side effectsTariffs might raise the cost of imported inputs, weakening export-oriented manufacturers compared to foreign rivalsThe reach of countervailing duties is limited: they do not apply in third markets, where European manufacturing sells around a quarter of its output and still faces Chinese competitionRather than shaping its China policy on its own, the EU should actively seek allies; it should therefore avoid measures that hit the very partners it needs

Date: 2026
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