Tuesday, August 5, 2025

EU, China agree to support strong trade reforms to combat US tariffs

Date:

In a phone call on Tuesday, European Commission President Ursula von der Leyen discussed with Chinese Premier Li Qiang the growing trade tensions following US President Donald Trump’s sweeping import tariffs. Von der Leyen’s office released a statement saying Europe and China, as two of the world’s largest markets, must support a strong reformed trading system that is free, fair and founded on a level playing field.

The EU and China plan to create a mechanism to monitor potential trade diversion, as Brussels worries China might redirect its exports to Europe following US restrictions.
Beijing called Trump’s announcement of additional 50% tariffs on Chinese imports “blackmail”. Trump has threatened to increase these duties to over 100% from Wednesday, following China’s matching of his earlier “reciprocal” tariffs.Also read: Donald Trump dismisses last-gasp EU push to stop tariffs kicking in

Premier Li described US tariffs as “typical unilateralist, protectionist, economic bullying”. According to state-run Xinhua news agency, Li said China’s countermeasures aim to protect both national interests and global trade rules.

Li mentioned China’s macroeconomic policies account for various uncertainties, with sufficient policy tools available. “China is willing to strengthen political mutual trust with the EU,” Li said, encouraging both sides to maintain free trade.

The EU has drafted its own counter-tariffs in response to Trump’s measures, which have affected numerous countries, disrupted financial markets, and raised concerns about a potential global recession.

Also read: Billionaire investor Ray Dalio says market meltdown symptom of a deeper problem



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