EU, China warn against trade friction after Trump's return

EU, China warn against trade friction after Trump's return

DAVOS
EU, China warn against trade friction after Trumps return

EU, German and Chinese leaders took turns defending global cooperation in Davos as the spectre of new trade wars looms following Donald Trump's return to the White House.

Trump will make an online appearance at the World Economic Forum in Switzerland this week, but he has been the elephant in the room for the executives and leaders hobnobbing at the annual conference in the Swiss Alps.

In their speeches, European Commission President Ursula von der Leyen, Chinese Vice Premier Ding Xuexiang and German Chancellor Olaf Scholz offered visions of the world that are mirror opposites to those of the self-professed tariff-loving Trump.

"Protectionism leads nowhere and there are no winners in a trade war," Ding said, without mentioning Trump directly.

Meanwhile, von der Leyen took a conciliatory tone, saying the EU's "first priority will be to engage early" and "be ready to negotiate" with Trump.

"We will be pragmatic but we will always stand by our principles, to protect our interests and uphold our values," she said.

The European Commission president also said that Europe "must engage constructively with China - to find solutions in our mutual interest" despite escalating trade tensions between the two.

Brussels has provoked Beijing's ire with a raft of probes targeting state subsidies in the green tech sector, as well as imposing tariffs on Chinese electric cars.

Ding warned against "erecting green barriers that could disrupt normal economic and trade cooperation."

Scholz vowed to "defend free trade" with other partners, warning that "isolation comes at the expense of prosperity."

Trump pledged on Jan. 21 to hit the European Union with tariffs, adding that a 10 percent duty on Chinese imports could also come as soon as Feb. 1.

This was the same date he earlier said he could impose 25 percent tariffs on Canada and Mexico, accusing them of failing to stop illegal immigration and fentanyl trafficking into the U.S.

He cited the need to rectify the EU's trade imbalances with the United States while taking aim once again at Beijing.

"They treat us very, very badly. So they're going to be in for tariffs," Trump said of the EU. "You can't get fairness unless you do that."

Trump also accused the bloc of not importing enough American products, saying he would "straighten that out" by imposing duties or by urging for more oil and gas purchases.

On Jan. 20, Trump vowed an immediate overhaul of the U.S. trade system - promising to "tariff and tax foreign countries to enrich our citizens."

He signed an order directing agencies to study a range of trade issues including deficits, unfair practices and currency manipulation.

Europeans are fretting the most about Trump's return, while countries from Brazil to China and India to Türkiye believe he will be good for their countries and global peace, according to a recent survey from the European Council on Foreign Relations.