Eurometal, a manufacturing industry trade body, predicts 300,000 manufacturing job losses in the European Union during the rest of 2026 unless Brussels addresses growing competition from Chinese component manufacturers.
The group will take its warning to Brussels on Monday with a procession of 10 symbolic coffins around the European Commission headquarters, marked with phrases including “EU competitiveness”, “industrial jobs” and “European factories”.
Why Eurometal says supply chains are at risk
Eurometal president Alexander Julius said Chinese companies were moving beyond supplying raw materials and seeking positions in finished-product supply chains. He said control of components, including metals and chemicals used in 90% of manufacturing, could give Chinese manufacturers influence over wider value chains.
Julius said European manufacturers face higher costs from steel tariffs and carbon-emissions taxes, while Chinese components do not face those levies. He also pointed to what he described as an undervalued yuan, saying the combined pressures make it difficult for European companies to compete. For additional context, see “New US Tariffs May Be Imposed as Existing Trade Duties Near Expiration”.
Existing EU measures and the wider forecast
The EU imposed tariffs on Chinese electric vehicle imports in 2024 and introduced higher tariffs on foreign steel in June. Trade commissioner Maroš Šefčovič has described the bloc’s €360bn annual import-export imbalance with China as “not sustainable”.
A European Commission analysis published in June projected potential job losses of more than 1 million because of high energy costs and global competition. That estimate includes 100,000 job cuts confirmed by Volkswagen, according to the supplied report. A related part of this story is covered in “China protests UK nationalisation of British Steel, seeking compensation for losses”.
China has accused Europe of protectionism and threatened countermeasures if the EU further targets Chinese companies or products. The two sides have since agreed to a three-month period of talks intended to avert a trade war.
What happens next
The EU and China are due to continue talks for three months, with the discussions scheduled to end in October. The development of this issue can be followed in “US Economic Growth Slows to 1.5% in Q2 2026 Amid Inflation and Trade Pressures”.
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