EU’s top diplomat says China is ‘laughing’ at US trade wars

• The EU’s foreign policy chief suggested that China is benefiting from the trade tensions between the U.S. and its allies. She said trade wars often trigger inflation that hurts consumers.
• The U.S. and EU are in a trade dispute, with President Trump threatening a 200% tariff on alcohol in response to the EU’s plan to tax American whiskey, which is retaliatory action to Trump’s steel and aluminum tariffs.
• A Reuters/Ipsos poll revealed 57% of Americans think Trump’s economic policies are “too erratic,” while a majority of Republicans disagree.

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The European Union’s foreign policy chief is suggesting that China could benefit from the trade tensions between the United States and its allies. Kaja Kallas made the comments Thursday, March 13, to Bloomberg at a meeting of G7 leaders in Canada. 

“There are no winners in trade wars,” Kallas said. “Who is laughing on the side, looking at the side is China who is really benefiting from us having a trade war with Europe.”

Kallas added the EU is ready to retaliate but also, hold back. 

She said trade wars usually trigger inflation peaks that end up hitting consumers.

How is the trade war escalating?

Kallas’ comments came after President Donald Trump threatened to impose a 200% tariff on alcohol from the EU.

Trump made the threat in response to the EU’s plan to tax American whiskey exports. It’s a move the EU made in response to Trump’s steel and aluminum tariffs.

Trump stood firm on his tariff policy Thursday while talking to reporters at the White House.

“I’m not going to bend it all on aluminum or steel or cars. We’re not going to bend,” Trump said. 

In a post to X, France’s trade minister wrote:

“Donald Trump is escalating the trade war he chose to unleash. France remains determined to retaliate together with the European Commission and our partners. We will not give in to threats and will always protect our sectors.”

Laurent Saint-Martin

D. Trump lance la surenchère dans la guerre commerciale qu’il a choisi de déclencher.

La France reste déterminée à riposter avec la Commission européenne et nos partenaires.

Nous ne céderons pas aux menaces et protègerons toujours nos filières.

— Laurent Saint-Martin (@LaurentSMartin) March 13, 2025

What do Americans think about Trump’s economic policies?

Meanwhile, a new Reuters/Ipsos poll of more than 1,400 Americans found 57% say Trump’s economic policy moves are “too erratic.” However, only 29% of Republicans said the same, while 60% disagreed with the statement.

Trump insists the economy will boom with his policies. He’s called the economy’s current state a “period of transition,” saying bringing wealth to America will take time.