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Will Trump’s tariffs forge a new EU-China alliance? Not unless Beijing bridges the gap on human rights and investment
- Europe has concerns over Hong Kong, Huawei and barriers to China’s market that Beijing will have to assuage
- But while an anti-Trump front is unlikely, cooperation in other areas, including climate change and infrastructure investment, is possible
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China will soon be in good company as a target of US President Donald Trump’s maximum trade pressure campaign. An October 2 ruling by the World Trade Organisation will allow the United States to impose tariffs on imported goods worth US$7.5 billion from the European Union from October 18, paving the way for a tit-for-tat commercial battle between the two sides of the Atlantic.
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The question is now whether the mounting EU-US trade war will prompt Europe to join forces with China. Unsolved problems in economic relations, coupled with European concerns about the Chinese handling of the crisis in Hong Kong, make it difficult for the two parties to build an anti-Trump front – as tactical as it might be. But areas of possible cooperation exist between China and the EU.
The WTO’s decision followed a 15-year dispute between the US and the European bloc over controversial state aid for their aircraft makers – Boeing and Airbus, respectively.
EU leaders said they would retaliate if the US government were to go ahead with the tariffs. The WTO is expected to rule next year on what duties the EU can slap on the US for its subsidies for Boeing.
The US already levied tariffs on steel and aluminium imports from Europe last year. The EU struck back with US$3.1 billion worth of duties on US products, and will hit back if the Trump administration delivers tariffs on European cars.
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China is in a worse position. The US has so far imposed over US$360 billion worth of tariffs on Chinese goods, while Beijing has responded with duties on some US$110 billion of US items.
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