EU’s top diplomat cautions of trade war

(MENAFN) EU foreign policy chief Kaja Kallas has issued a strong warning against the prospect of a trade war between the US and the European Union, emphasizing that such a conflict would harm both sides and ultimately benefit China. The warning comes in response to US President Donald Trump's repeated accusations of unfair trade practices by the EU and his recent threats of tariffs on the bloc, following similar measures against Mexico, Canada, and China.

Ahead of an EU leaders' meeting in Brussels, Kallas stressed that there are no winners in trade wars, pointing out the deep economic interconnection between the US and the EU. She explained that tariffs would increase costs, negatively affecting people on both sides. Other European leaders, including German Chancellor Olaf Scholz, have echoed her concerns, calling for diplomacy and cooperation instead of escalating trade conflicts.

French officials have also warned that retaliatory tariffs could spiral into a damaging cycle. Trump, however, maintains that the EU benefits from a trade imbalance, with European exports to the US consistently exceeding imports. Despite the potential for domestic pain, he believes tariffs would be worth the cost.

Meanwhile, Russian President Vladimir Putin commented that EU leaders, having followed Washington's lead under Biden, would soon fall in line with Trump's demands.

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