President’s Message: 2025 in Review

by European Chamber President Jens Eskelund
"For the Chamber and its members, 2025 proved to be an extraordinary year. From tariffs to export controls, businesses faced an unprecedented level of global uncertainty. ‘Involution’ became a household term amidst persistent weak demand in the face of strong supply growth, and while some companies managed to grow top lines, many more of our members experienced shrinking margins.

In this environment, China's exports continued to skyrocket, with the European Union (EU) one of their main destinations. While still bringing immense value to both sides, the EU-China trade relationship has been under strain throughout the year, in part due to the renminbi sinking to a 10-year low against the euro, which, coupled with the ongoing factory gate deflation in China, has brought down the price of Chinese goods in Europe, further limiting the ability of certain core EU industries to compete. With Brussels now deciding that corrective action is necessary but not yet having set a clear direction, the year will end with more questions than answers as to how the EU-China trade relationship will evolve.

The United States (US)-China trade war has also been a defining feature of 2025, with tariffs at unprecedented levels imposed throughout the first half of the year and export controls causing significant collateral damage, including for European companies. While the late October US-China trade deal put a stop to further deterioration, companies remain on edge given how quickly new escalations can occur.
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