Priyanka Tiwari
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European Commission President Ursula von der Leyen has warned against the dangers of an escalating trade conflict during a phone call with Chinese Premier Li Qiang, the European Commission confirmed on Tuesday. The conversation came as tensions rose following the United States’ imposition of sweeping tariffs, which have disrupted global markets and drawn criticism from major economies.
EU Seeks Negotiated Solution to Trade Disputes
In the official readout, von der Leyen emphasized the need to avoid further escalation and advocated for a negotiated resolution. Her remarks came after China vowed to "fight to the end" in response to additional US tariffs announced by former President Donald Trump.
Trump’s new trade measures—adding a 34% tariff on Chinese goods—have already rattled financial markets. China’s retaliation, which includes an equivalent 34% duty on US imports effective Thursday, further deepens the divide between the world’s two largest economies.
Europe Positions Itself as Stabilizer
While Washington and Beijing intensify their trade standoff, the European Union has taken a more cautious approach. Brussels has not yet responded to the 20% US tariff imposed on EU imports but is preparing countermeasures tied to earlier steel and aluminum duties.
Von der Leyen stated:
“Europe and China, as two of the world’s largest markets, share the responsibility of supporting a reformed, rules-based trading system that is fair and balanced.”
The European Commission also warned against trade diversion, expressing concern that US tariffs may cause a surge of Chinese exports into the EU. Sectors already burdened by overcapacity are seen as particularly vulnerable.
Mechanism Proposed to Track Trade Shifts
To address the risks of diverted goods entering Europe, von der Leyen and Li Qiang discussed the creation of a joint monitoring mechanism. This initiative would help track trade flows and ensure any irregularities are quickly identified and addressed.
Von der Leyen also noted that the EU had offered the US a proposal to exempt industrial goods, including cars, from tariffs, but Trump deemed the offer insufficient.
EU Nations Push for Diplomatic Trade Talks
Earlier this week, EU member states voiced their support for using diplomacy to avoid a full-scale trade war. The bloc is expected to continue pursuing negotiations with both Washington and Beijing to maintain economic stability and uphold global trade norms.
