Euro Zone Manufacturers Fear Cheap Chinese Imports Over US Tariffs

A European Central Bank survey reveals that euro zone manufacturers are more concerned about the influx of cheap Chinese imports than potential US tariffs. The survey, conducted in January 2025, shows manufacturers are taking cost-cutting measures amid fears of a potential tariff war and its impact on pricing.

Euro zone manufacturers are sounding the alarm over the influx of cheap imports from China, which they view as a greater threat than potential tariffs from the United States, according to a European Central Bank survey released on Friday.

Many manufacturers expressed concern about the indirect impact of increased Chinese imports if trade with the U.S. is restricted, leading to heightened apprehension about pricing pressures in the absence of protective EU measures.

The ECB's quarterly survey, involving 82 large non-financial companies, indicated that manufacturers are reducing workforce numbers or curbing hiring to manage costs, a factor influencing the bank's recent decision to cut interest rates.

(With inputs from agencies.)