Economy

Trade relations between the European Union and China remained strong, with large import and export volumes, but with a noticeable imbalance that continues to widen to the detriment of the EU. Trade in goods between the two sides for 2024 reached a total of around €731 billion, including a deficit of more than €300 billion for the European bloc.
During 2024, the EU exported goods to China worth €213.3 billion and imported goods from China worth €517.8 billion. Compared to 2023, exports fell by 4.5%, while imports slightly decreased by 0.5%.
In the period 2014–2024, EU imports from China increased by 101.9%, while exports increased by 47.0%. This shows an uneven rate of growth and highlights the ongoing challenge of creating a more balanced trading relationship between the two partners.
The most important goods that the EU imported from China include telecommunications and audio equipment, personal computers, office equipment and electrical machinery. Meanwhile, the EU's main exports to China include heavy machinery, vehicles and vehicle spare parts.
In addition to trade in goods, EU-China economic relations are also characterised by significant investment exchanges. The cumulative value of EU foreign direct investment (FDI) in China since 2000 reached €177 billion in the first quarter of 2024. The three main sectors of investment were: the automotive industry, basic materials and machinery. Meanwhile, the cumulative value of Chinese investment in the EU-27 countries for the same period reached €143 billion. Chinese investments are mainly concentrated in three main sectors: automotive, healthcare, pharmaceuticals and biotechnology, as well as information and communication technologies.
Against the backdrop of these figures, European leaders have stressed the importance of fairer and more equitable trade with China, calling for concrete measures to address the internal barriers that European companies face in the Chinese market.
The EU continues to remain one of China's main economic partners, while China is one of the most important markets for European products and technologies. However, issues such as intellectual property protection, state subsidies and the lack of equal access to the Chinese market remain key challenges to sustainable economic cooperation.

Donald Trump threatened that the US will impose an additional 50% tariff on imports from China if China does not immediately withdraw its 34% tariff on American goods by April 8.
In a post on his Truth Social platform, Trump said that if China does not comply, the new tariffs will take effect on April 9 and all trade negotiations with China will be suspended.
This escalation comes after a round of reciprocal tariffs, where the US initially imposed a 34% tariff on Chinese products and China retaliated with the same percentage on American products. With the additional tariff proposed by Trump, the total tariffs on Chinese goods could exceed 100%.
The news caused major fluctuations in financial markets, with shares of Alibaba Group Holding Ltd (BABA) falling significantly by 9.06%, closing at 105.98 US dollars.

The GSP program, a US trade initiative to stimulate economic development in developing countries, has allowed a wide range of products from Kosovo, including agricultural products, manufactured goods and handicrafts, to enter the US market duty-free since 2008.
While Kosovo has enjoyed preferential access to the US market for years through the Generalised System of Preferences (GSP) by exporting duty-free to the US, it continues to apply tariffs on US goods, up to 10%. Unlike trading partners such as the EU or CEFTA countries, the US does not enjoy preferential treatment in the Kosovo market.
In this context, in April 2025, the administration of President Donald Trump announced the imposition of a 10% tariff on imports from Kosovo. These tariffs were introduced as part of a strategy to promote trade reciprocity and balance one-sided relations with smaller economic partners.
But how is it possible for Kosovo to impose customs tariffs on an ally that has been among its biggest supporters on the path to freedom and statehood? 
Imposing customs duties on American products, while Kosovor exports entered the US duty-free through the GSP program, was not only unbalanced, but also against the principles of strategic partnership.
The 10% tariff by the Trump administration is an opportunity for Kosovo to recalibrate the trade relationship with its largest ally, not only as an act of gratitude, but as a smart geopolitical strategy.