There has been “a surge” of Chinese food companies seeking UK and EU markets in the wake of Donald Trump’s tariffs, according to exports data analysis.
Food, food supplement, and sports nutrition regulatory compliance company Rubicon Bridge has reported a rapid increase in enquiries from Chinese companies seeking new European markets as an alternative to exporting to the US.
Despite Washington and Beijing’s recent truce that scaled down eye-watering tariffs on each other’s goods, the trade instability derived from US levies on goods from China has encouraged Chinese producers to look to other markets for their exports.
“We’ve seen a surge in enquiries from Chinese food, supplements, cosmetics and ingredient companies seeking pathways into European markets as a result of the escalating trade war,” said Rubicon Bridge MD Kathryn Szymonowicz.
Rubicon Bridge saw a 25% increase in new products from China undergoing compliance checks in Q1 2025 when compared to Q4 in 2024. The UK saw the biggest jump, with a 30% rise in checks over the same period.
“These businesses are urgently looking to diversify from US dependency, but face the challenge of overcoming EU compliance requirements that can make entering these markets difficult and time-consuming,” Szymonowicz said.
In April alone, 63% of products assessed returned a ‘red’ result (non-compliant) – suggesting “many of those goods were originally developed for less regulated markets, such as the US”, the market analyst said.
Additionally, Rubicon Bridge has been notified by the United Natural Products Alliance (UNPA) that several categories of Chinese exports to the US – including dietary ingredients and vitamins – are seeing declining order volumes.
There has also been a significant reduction in sea freight traffic from China to the US in recent weeks, with West Coast ports reporting a slowdown to levels not seen since the pandemic.
This followed the rapidly escalating trade battle between Trump and Chinese President Xi Jinping last month, which ultimately saw US levies on Chinese imports skyrocket to 145%, while China hit the US with 125% tariffs.
Last week, the two countries agreed to slash those figures to 30% and 10%, respectively.
But while tariffs may have been reduced, the US’s import taxes on major Chinese exports – for instance, apple juice concentrate – are forcing the country’s producers to look for alternative outlets such as Europe, noted Thijs Geijer, senior food and agriculture sector economist at Dutch bank ING.
China has also now re-entered Britain’s top 10 current export destinations for the first time since autumn 2022, according to Santander UK’s Spring 2025 Trade Barometer report out this week.
The Santander survey also showed that 69% of businesses surveyed in the food and beverage sector thought that increased risk of trade tariffs globally was “a major concern for business growth”, compared to 63% of total sample.
Jane Galvin, head of corporate clients at Santander UK, said: “As the UK faces ongoing domestic challenges, businesses are looking beyond our borders for growth opportunities” and “looking towards the likes of China, the US, Canada and Australia”.
Meanwhile, the research showed Ireland and Italy, two of Britain’s key food & drink partners, have fallen down the list of export destinations amid a continued slump in trade with the bloc.
Food traders will also be closely following the UK-EU Brexit summit talks next week in hopes of announcements that could decrease friction between both parties.
