Trade fallout for middle powers
European business groups and India are repositioning as U.S.–China trade friction deepens, warning that third‑party firms are becoming collateral damage. (scmp.com) The EU Chamber in China urged Brussels not to be 'passive', and India is sending a delegation to Washington next week for fresh trade talks amid ongoing USTR Section 301 investigations. (scmp.com, ) Commentators say India aims to deepen U.S. ties while preserving room with Europe, China and Russia. (dailypioneer.com)
Europe’s middle powers are trying to stop a United States-China trade fight from dictating their own economies. In Beijing, the European Union Chamber in China said European firms are becoming “collateral damage,” while India is sending officials to Washington from April 20 for fresh trade talks. (scmp.com, msn.com) The European Union Chamber’s warning came with a new report launched on April 14 called “Exporting Control: China’s New Strategic Toolkit.” Chamber president Jens Eskelund said Brussels should not be a “passive recipient” of deals struck by Washington and Beijing. (europeanchamber.com.cn, scmp.com) India’s delegation is heading to Washington after Prime Minister Narendra Modi and President Donald Trump reviewed trade ties, according to reports published April 15. The talks are aimed at an interim trade agreement after earlier expectations of a March deal slipped. (msn.com, msn.com) The pressure point is not just tariffs. China has tightened export controls, and the New York Times reported on April 14 that new Chinese rules could let authorities penalize companies and executives for shifting supply chains out of the country. (nytimes.com, scmp.com) Europe enters that fight with heavy exposure. Eurostat said the European Union exported €199.6 billion of goods to China in 2025 and imported €559.4 billion, leaving a €359.8 billion goods deficit. (ec.europa.eu) India is negotiating with Washington while also sitting inside the latest United States trade probe. The Office of the United States Trade Representative says it opened Section 301 investigations on March 11 and March 12 into structural excess capacity and forced-labor enforcement, and reporting in India said the excess-capacity case covers 16 economies including India. (ustr.gov, federalregister.gov, economictimes.indiatimes.com) Section 301 is the part of United States trade law that lets the government investigate foreign practices it says burden American commerce and then impose tariffs or other restrictions. A Congressional Research Service update published March 13 said the law covers goods, services and investment, and does not narrowly limit the scope of an investigation. (congress.gov, ustr.gov) That makes India’s balancing act more delicate than the usual tariff bargaining. The United States Trade Representative says U.S. goods imports from India reached $103.8 billion in 2025, while the U.S. goods trade deficit with India rose to $58.2 billion. (ustr.gov) European companies in China are also moving the opposite way from the political mood in Brussels and Washington. Eskelund said last year there were twice as many firms increasing onshoring in China as firms increasing offshoring away from it. (finance.yahoo.com) India, by contrast, is trying to deepen access to the United States market without locking itself into one bloc. Reuters reported on April 15 that India’s March trade deficit narrowed as exports to the United States surged, giving New Delhi another reason to keep the Washington channel open even as it preserves ties with Europe, China and Russia. (msn.com) The next marker comes on April 20, when Indian officials are due in Washington and Europe’s business lobby will still be pressing Brussels to speak for itself. The common complaint from both is narrower than grand strategy: when the two biggest economies escalate, everyone else gets priced, probed or squeezed. (msn.com, scmp.com)
