U.S. President Donald Trump's tariff policies may compel China to redirect more of its goods to Europe&mdasheven at significantly discounted prices. According to several analysts, this shift could further weaken European industries that are already struggling with competition from Chinese imports.

The trade war launched by President Trump may disrupt global trade flows, and analysts say this could lead to a surge of Chinese goods entering the European market.

Although the European Union expressed some relief after Trump announced on Wednesday a 90-day suspension of plans to impose steep tariffs on certain imports, the moratorium does not apply to goods imported from China. This leaves European policymakers wondering how China will manage the inventory originally destined for the U.S. market.China may choose to redirect these products to Europe, even if it means cutting prices to sell. (Photo: Screenshot from Pexels)

Currently, the 27 EU member states face only a 10% base tariff when exporting to the U.S., while Chinese exports to the U.S. are subject to tariffs as high as 145%. As a result, many Chinese products have become unaffordable for lower-income American consumers.

Consequently, China may choose to redirect these products to the European market&mdasheven if it means offering them at heavily reduced prices.

Analysts warn that this could further damage European industries that are already under pressure from Chinese competition.

Daniela Sabin Hathorn, Senior Market Analyst at Capital.com, commented: &ldquoThis redirection may give rise to new trade routes and more complex international supply chains. Companies may rearrange shipping methods for Chinese goods to bypass U.S. tariffs.&rdquo

French President Emmanuel Macron has already issued a warning about this potential risk, stating that the EU must carefully evaluate the indirect consequences of Trump&rsquos trade decisions.

He said: &ldquoThe tariffs on Chinese goods are extremely high&hellip Some of these products may be diverted to other markets, which would clearly impact our economy and create imbalances in certain sectors and markets.&rdquo

Macron urged the EU to take protective measures to guard against the influx of goods from third countries.