Weeks before a crucial summit in Beijing, the European Union (EU) is caught in a dilemma between two daunting trade battles.
One critical battle with China involves electric vehicles (EVs) and pork, while the other with Russia involves oil and geopolitics.
On Tuesday, China extended its anti-dumping investigation into €1.75 billion worth of EU pork imports, seen as retaliation after Brussels imposed tariffs of up to 45% on Chinese-made EVs.
While both sides hope for a “diplomatic reset” this July, tensions are running high with pork and EVs now symbols of global bargaining power.
In another conflict, the EU announced its 18th sanctions package against Russia, blacklisting 22 more banks, 77 ships from Putin’s “shadow fleet” and, most importantly, proposing a new oil price cap of $45 a barrel.
Brussels hopes this pressure will force a 30-day ceasefire in Ukraine, but faces resistance from Hungary, Slovakia and even Washington.
With Trump refusing to join the new sanctions and China continuing to press, Brussels now finds itself caught in a balancing act between incentives and pressures across continents, commodities and crises.
In its bid to become a world power, Brussels is now trying to put out two fires it has started — while hoping they won’t flare up again.
