Mon Feb 03 18:43:11 IST 2025: ## EU Warns of China’s Gain in Potential US Trade War

**Brussels, Belgium –** The European Union’s top foreign affairs official, Kaja Kallas, has warned that a potential US-EU trade war, threatened by President Donald Trump, would ultimately benefit China. Speaking on Monday, Kallas stated that increased tariffs would harm consumers and the job market on both sides of the Atlantic, while China would be the primary beneficiary of any resulting economic instability.

Trump, who announced tariffs on Canada, Mexico, and China on Saturday, suggested on Sunday that tariffs against the EU were “definitely” on the cards. He cited a purported €4,300 billion ($4,400 billion) trade surplus the EU holds with the US, a figure significantly higher than official EU data, which shows a surplus of €155.8 billion ($159.9 billion) in goods in 2023, offset by a services deficit. Trump specifically mentioned automobiles and farm products as targets, labeling the EU’s trade position an “atrocity.”

While acknowledging that the EU is “carefully listening and preparing,” Kallas emphasized that “there are no winners in trade wars.” Trump also commented on the UK’s trade relationship with the US, suggesting that while it was “out of line,” a resolution could be reached. Kallas’s statement highlights the EU’s concern over the escalating trade tensions and its assessment of the potential geopolitical ramifications.

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