The European Council has finally approved the framework to modernize its trade defense instruments. While final rules still have a lot of negotiations ahead, it will allow the EU to apply higher tariffs, particularly to energy intensive industries. This further sets the stage for 2017’s main trade battles that will likely see the EU and U.S. try to tackle China’s growing trade hegemony. China’s total exports to the EU fell 5% in the past quarter on a year earlier, while steel fell 36% but aluminum increased 1%. This suggests the EU’s new rules might first be pointed at the aluminum indus...