New EU import surveillance tool: monitoring trade diversions

In response to escalating global trade tensions and the consequential redirection of goods into the European Union (EU) market, the European Commission has launched a comprehensive import surveillance tool. This initiative aims to monitor and mitigate the adverse effects of trade diversion, ensuring the stability and competitiveness of EU industries. 

Background: The Surge in Trade Diversion

The global trade landscape has been significantly altered by recent policy shifts, notably the imposition of high tariffs by major economies. For instance, the United States, under President Donald Trump, reinstated tariffs of up to 145% on Chinese goods in early 2025. This move prompted exporters to seek alternative markets, leading to a notable increase in exports to the EU. Chinese exports to the EU rose by 8.2% in April 2025 compared to the previous year, with specific surges observed in Germany (20.4%), the Netherlands (5.6%), Italy (4.7%), and France (2.6%) . 

Such redirection of goods (trade diversions), often at lower prices, poses a threat to EU industries by creating market distortions and undermining domestic production. The steel sector, for example, has experienced a tenfold increase in imports of stainless steel bars, accompanied by an 88% drop in prices . 

The Import Surveillance Tool: functionality and objectives

Launched on 7 April 2025, the import surveillance tool is designed to provide real-time monitoring of import trends, enabling the EU to respond promptly to potential market disruptions. Key features include: 

  • Automated Dashboard: Utilizes customs surveillance data to track import volumes and prices across various product categories. 
  • Monthly Updates: Ensures timely identification of significant changes in trade patterns.
  • Heat Maps: Visual representations highlight sectors and countries with notable import surges. 
  • Industry Collaboration: Encourages EU producers and associations to provide market intelligence, enhancing the tool’s analytical capabilities . 

The tool specifically flags products that exhibit a simultaneous increase in import volumes and a decrease in prices, particularly those where EU production exists, indicating potential trade diversion.

Strategic implications and protective measure

The surveillance tool serves as a critical component of the EU’s trade defence strategy. By identifying and analyzing trade diversion patterns, the EU can implement targeted measures such as: 

  • Safeguards: Temporary restrictions to protect specific industries from sudden import surges.
  • Anti-Dumping Duties: Levies imposed on imports sold below fair market value to prevent market distortion.
  • Anti-Subsidy Measures: Countervailing duties to offset unfair subsidies provided by exporting countries . 

These measures aim to maintain fair competition within the EU market, ensuring the sustainability of domestic industries.

The European Commission’s import surveillance tool represents a proactive approach to safeguarding the EU’s economic interests amidst a volatile global trade environment. By leveraging data-driven insights and fostering collaboration with industry stakeholders, the EU is better equipped to detect and counteract harmful trade diversion, preserving the integrity of its internal market. 


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