Expert Explains Why Europe Is Concerned By The Ongoing U.S.-China Trade War

Forbes Breaking News

On "Forbes Newsroom", Fellow at the European Foreign Relations Council, Liana Fix, discussed the concerns Europe has about the continued trade war between the U.S. and China.

Transcript

00:00Hi, everyone. I'm Maggie McGrath, senior editor at Forbes. On Monday, China warned other countries

00:10to not curb their trade with China in an attempt to curry favor with U.S. President Trump.

00:18Joining us to discuss this political landscape on a global level is Liana Fix. She is a fellow

00:24for Europe at the Council on Foreign Relations. She has an expertise on Germany and European

00:30foreign policy, but also European China policy. Liana, thank you so much for being here.

00:36Absolutely. Thank you for the invite.

00:38So U.S.-China trade relations has been a major point of news over the last several weeks,

00:45really ever since Liberation Day. But let's set the stage from your perspective as a European

00:50expert. Can you kind of describe what the last few weeks have been like for European countries as

00:57America has announced these massive tariffs? Yeah. So first of all, Europeans themselves

01:03are, of course, affected by the tariffs. Donald Trump has also announced tariffs of the European

01:07Union. Now the administration has been saying they're hopeful that a deal can be struck soon

01:12because the U.S. market is obviously a big market for the U.S. side. But then the problems between

01:18the U.S. and China, the wildly escalating trade and tariff war between the U.S. and China and the

01:23fact that they are still looking for an exit strategy out of this escalation spiral also has

01:28implications for Europe. Because if China doesn't have access to the U.S. market anymore, then China

01:34has become an export superpower. Something that Germany has been in the past has now been taken over by

01:40China. China is exporting massively and has huge overcapacities in many industrial goods and many

01:46consumer goods. China will look for other markets if it can't export to the United States. And Europe

01:52is concerned that it's going to be the one market that's still open and going to be flooded by Chinese

01:57products that can't be sold anymore to the United States.

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