Russia filed its initial World Trade Organization complaint against the European Union's Carbon Border Adjustment Mechanism in May 2025, requesting consultations that the European Union rejected.

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This month, the European Union and China reached an agreement to cap Chinese hybrid vehicle imports into the EU at 350,000 annually.

Under the draft Franco-German deal, the UK must align with EU trade protection measures, including tariffs on Chinese electric vehicles, to qualify for Made in Europe status.

France and Germany reached a provisional deal on October 15, 2026, to soften EU car emissions targets and allow the UK to join the Made in Europe scheme.

The Franco-German agreement restricts the Made in Europe status for cars to the 27 EU member states, while allowing opt-in conditions for Britain and Norway.

European carmakers requested Britain's inclusion in Made in Europe public procurement rules because of deeply integrated cross-border supply chains.

The UK imposes a 10% import duty on Chinese electric vehicles, whereas the European Union has imposed tariffs up to 45% since 2024.

In October 2026, China's Ministry of Commerce urged France and Germany to refrain from encouraging the European Union to resort to protectionist measures.

European Commission trade envoy Maroš Šefčovič traveled to Beijing on October 8, 2026, for two days of negotiations with Chinese Commerce Minister Wang Wentao to address the trade deficit.

The World Trade Organization increased its 2026 merchandise trade growth forecast to 3.9%, up from its March 2026 prediction of 1.9%, driven by artificial intelligence investments.

The World Trade Organization reported that demand for artificial intelligence-enabling goods, such as semiconductors and servers, accounted for 47% of global merchandise trade growth in the first half of 2026.

Trade protectionism is an effective way to build European industrial competitiveness

France and Germany proposed making it easier for the European Commission to deploy its Anti-Coercion Instrument to block or restrict trade and investment from countries putting undue pressure on European Union members.

The World Trade Organization projected that global gross domestic product will grow by 2.6% in 2026 and by 2.9% in 2027.

The European Union set an October 2026 deadline for reaching an agreement with China on ways to reduce China's trade surplus with the bloc

China and the European Union agreed to continue discussions on price undertakings and review procedures related to the EU's anti-subsidy investigation into Chinese electric vehicles dating to 2024

European Trade Commissioner Maros Sefcovic sought to reduce the European Union's trade deficit with China, which amounts to over €1 billion per day

The Chinese commerce ministry stated that the hybrid vehicle trade understanding reached in Beijing on October 9, 2026 is consistent with World Trade Organization rules

The October 9, 2026 hybrid vehicle trade understanding between China and the European Union in Beijing was part of a 16-point joint agreement reached during two days of talks and announced by China's commerce ministry

France and Germany proposed a last-resort trade instrument that could cut off China's access to the European Union single market in response to coercive measures

China and the European Union scheduled a third regular meeting of their bilateral trade consultation mechanism for March 2027, with a ministerial-level video conference in January