Diverted goods from China risk 'flooding' EU market in wake of US tariffs

Nevin Economic Research Institute warned that increased protectionism would likely distort production allocation and erode competitiveness for European retailers 

A person using the Shein app on a mobile phone.

Ongoing trade tensions between the US and the rest of the world could result in diverted goods flooding the EU market, the Nevin Economic Research Institute (NERI) has warned.

Speaking at an Oireachtas joint committee meeting on the impact of tariffs on the Irish economy, co-director of NERI Tom McDonnell said that in addition to rising prices, falling productivity and a likely spike in unemployment, US tariffs could also see an over-concentration of goods from countries like China entering the European market.