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How could the US-China trade rearrangement affect Europe?

Amid the pressures posed by unpredictable US-China trade relations, many US firms are considering alternative supply sources to avoid rising prices. Could Europe be the answer?

READ MORE : http://www.euronews.com/2025/07/02/how-could-the-us-china-trade-rearrangement-affect-europe

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Transcript
00:00How could the US-China trade rearrangement affect Europe?
00:08Amid the pressures posed by unpredictable US-China trade relations,
00:13many US firms are considering alternative supply sources to avoid rising prices.
00:19Europe could play a key role in this trade rearrangement both as an exporter and an importer.
00:25On average, Europe already supplies 55% of the available global export market
00:31for products that the United States imports from China.
00:34According to simulations conducted by McKenzie,
00:36Europe could potentially replace about 30% to 65% of US imports from China with its own exports,
00:44even in the face of high US tariffs on European goods.
00:48Europe's role in this scenario is most pronounced when it comes to electronics,
00:52other manufacturing and textiles.
00:55These are the same sectors for which the US currently imports heavily from China.
01:00Another example is toys.
01:02Europe could supply the US market with Czech and German toys rather than toys made in China.
01:07Meanwhile, European consumers might increasingly buy Chinese-made toys.
01:12As Europe has increased its exports to the US,
01:14it has also become a significant destination for Chinese exports,
01:18absorbing up to 55% of China's current shipments to the US.
01:23This shift could lead to deeper trade interdependence between Europe and China,
01:27as well as geopolitical tensions.

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