President Trump’s tariff means that companies throughout the European Union and around the world are at risk of loss of access to the largest consumer market in the world.
Of course, they are looking for the next big thing. Statistically, this means China.
The European Union has The second largest market for consumers In the world behind America. The third China. But China and the European Union have not been exactly comfortable in recent years. Europe has regularly criticized China for excessive production and dumping of artificial cheap products in the global market, and European leaders criticized China Attitude Russia’s war in Ukraine, among other political and social issues.
However, the European Union stare at 20 percent of comprehensive definitions in the United States, and even high fees on major products such as cars and trucks. China faces rates of more than 50 percent. Experts said there is a small opportunity because this customs tariff can approach the two large economies to each other – an unintended result at a time when Mr. Trump America tries to weaken China.
There were early hints of ice melting. The European Union imposed a higher tariff on Chinese electric vehicles last year, but the Chinese Ministry of Trade said in a press conference on Thursday that the two sides Agree restart Negotiations. Olov Jill, a spokesman for the European Union for Trade, said that officials agreed to “continue discussions” on electric car supplies chains and took a new look at the prices.
But there is a greater possibility that this moment will tear the European Union and China separately. Low access to China to American consumers can send more minerals, chemicals and other chemical products in the direction of Europe, which increases concerns about throwing and increasing high tensions already in other matters. Relations between the two countries can deteriorate, which expands damage as America explodes long world trade patterns.
“There are two ways that this can play,” said the Teresa Fallon, an analyst at the center of Russia, Europe, Europe, in Brussels. “Europe is really difficult.”
Europe quickly responds to Mr. Trump’s trade war. He – she End Next week, the initial lists of commodities allocated for revenge definitions, and officials promised more. It is also trying to negotiate to get rid of definitions, with the European Union Trade Commissioner to meet his counterparts in the United States through the conferences on Friday.
If the US tariff is not negotiated quickly, you can find Europe – and China – itself looking for new consumers.
Another large part of the European strategy? Create new friendships.
Since late last year, the bloc has expanded relations with it Indiaand South American countriesand South Africaand South Korea and Mexico. It also approached Canada and the United Kingdom, especially in defense issues.
However, it is difficult to replace the United States with one -time commercial deals elsewhere due to the huge size of the consumer market: $ 18.8 trillion in 2024, according to World Bank data. The European Union extends about $ 10 trillion, in China with about $ 7 trillion. America is the European Union The most important Export market.
Fill in the shape of the United States with China, despite sporting clarity, will be difficult. China and the European Union have been superior in recent years, with Decrease Trade flows and regular accusations by the European Union are that China uses commercial practices that distort the market.
The Europe’s dilemma, when it was related to China, was completely presented the way European leaders have spoken about the Asian nation in recent months.
“We must participate constructively with China,” said Ursula von der Layen, who heads the European Union’s executive arm, during a speech in Davos, Switzerland in January. I talked about expanding trade and investment links “wherever possible”.
But when Mr. Trump’s introductory ads were released this week, it was a flood of cheap goods coming from Asia as an immediate concern.
“We will closely monitor the indirect effects that these definitions can make, because we cannot absorb the global excessive capacity, and we will not accept to throw our market,” Mrs. von der Lin warned in Its wrapped response Thursday to the Trump tariff.
European Union and China To get top This year, although the details about the timing and the location have not yet been determined.
“The Trump tariff will transfer a huge amount of Chinese exports to the European Union,” said Noah Parkin, a visiting colleague in Berlin at the German Marshall Fund and a specialist in China.
He added, “The bloc is likely to throw the entire commercial policy tools fund in Beijing in response.” “It is difficult to imagine a scenario as this ends well for the relationship of the European Union,”.