Asger Risom
EU calls for calm as China and the U.S. edge closer to a full-scale trade war
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With protectionism on the rise and geopolitical competition intensifying, international trade has become increasingly volatile.
Recent developments between the U.S., China, and the European Union point to an alarming drift toward confrontation, with global economic stability hanging in the balance.
EU warns against further escalation in U.S.-China tariff standoff
European Commission President Ursula von der Leyen spoke by phone with Chinese Premier Li Qiang on Tuesday, stressing the “vital importance of stability” in the global economy.
Her warning came shortly after China vowed to “fight to the end” against new tariff threats issued by U.S. President Donald Trump.
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According to HotNews, von der Leyen urged a negotiated resolution and warned against any further escalation.
The European Commission confirmed that she emphasized the need for restraint, especially as Beijing prepares to implement 34% tariffs on U.S. goods starting Thursday.
In response, Trump threatened to raise total tariffs on Chinese imports to as high as 104% if Beijing fails to back down.
China says it’s ready for impact as Europe fears spillover
Premier Li Qiang told von der Leyen that China has the “policy tools” required to handle the situation.
He expressed confidence in maintaining steady economic growth despite external pressure, citing strategic reserves and proactive macroeconomic planning.
Meanwhile, von der Leyen voiced concerns about the impact of redirected Chinese exports flooding the EU market if U.S. tariffs go into effect.
She called for close coordination to monitor trade flow disruptions and prevent market imbalances, particularly in sectors already struggling with global overcapacity.
EU seeks role as stabilizer in global trade system
Von der Leyen reiterated the EU’s offer to the United States for a bilateral tariff exemption on cars and industrial goods — a proposal the Trump administration rejected as inadequate.
The EU president also pushed for renewed commitment from both China and Europe to uphold a “reformed, fair and rules-based trading system.”
In a statement, Brussels confirmed that EU and Chinese leaders are now exploring the creation of a joint mechanism to monitor and address trade diversion risks.
The move underscores Europe’s desire to position itself as a stabilizing force in an increasingly fractured global economy.
