Top diplomat: US-EU trade war would only benefit China

European Union (EU) High Representative for Foreign Affairs and Security Policy, Kaja Kallas, warned that in the event of a trade war between the European Union and the United States, "China will laugh the loudest."

Kallas emphasized that there are no winners in a trade war, urging caution on this issue, Caliber.Az reports via Ukrainian media.

"If you look at China, we have to stick together. I mean Europe and the United States. If we have a trade war between the United States and the European Union, who will laugh? It will be China that will laugh out loud," she concluded.

This statement follows a report in the Financial Times, where Stefan Sejourne, the vice chairman of the European Commission for Prosperity and Industrial Strategy, suggested that Europe needs to adopt a "Europe First" strategy to mitigate the damage of a potential trade war with the United States. Sejourne argued that Europe should focus on its own efforts to promote goods to markets worldwide. "I fundamentally believe that Europe has everything to gain from being open to the world," Sejourne said. "But when China says 'Made in China' or the US says 'America First', we must say: 'Made in Europe' or 'Europe First'."

The new European Commission has committed to restoring the EU’s competitiveness over the next five years, a challenge that could become more difficult if US President-elect Donald Trump follows through on his threats to impose sweeping tariffs, abandon trade deals, and reduce regulations for US businesses. Sejourne expressed concern, saying his “biggest fear” was that Europe would become "a collateral victim of a global trade war." He explained, "If all the world markets close, the only remaining open market cannot be the European market."

Sejourne stressed that Brussels must send a "firm message" to the United States, urging the new administration to recognize that both sides have "nothing to gain from having a trade war." He rejected accusations that the EU was pursuing a protectionist agenda, emphasizing, "It’s not at all about protectionism because Europe really has no interest in a global trade war."

The fear of a trade war was further amplified following Donald Trump’s victory in the US presidential election, which analysts warned could severely impact the EU economy. In response to Trump's threats of tariffs on European imports, the EU prepared a list of American goods for potential tariffs on October 15. Trump has also threatened to impose tariffs on goods from Canada, Mexico, and China upon his return to the White House.

China has reacted to the escalating tensions by stating that "no one wins in a trade war."

By Tamilla Hasanova