President Trump’s imposition of tariffs is putting companies across the European Union and worldwide at risk of losing access to the world’s largest consumer market. As a result, companies are seeking out the “next big thing,” which statistically would be China. Despite the European Union having the second-largest consumer market in the world and China being third, the two have had strained relations in recent years due to Europe’s criticism of China’s trade practices and stance on Russia’s war in Ukraine. However, in light of the 20% across-the-board tariffs and even higher levies being imposed by the US, and over 50% tariffs being imposed on China, there is a possibility that the tariffs could drive the two large economies closer together. Early hints of a thaw have been seen, with the European Union and China agreeing to restart negotiations on tariffs for electric vehicles. But there is an even greater possibility that this moment will tear the EU and China further apart, with China being prevented from accessing American consumers, which could lead to increased trade tensions with Europe. The EU is responding quickly to Mr. Trump’s trade war and plans to finalize lists of goods for retaliatory tariffs, and is also trying to negotiate to get rid of the tariffs. The EU is also looking to make new friends, with expanded relations with India, South American countries, South Africa, South Korea, and Mexico.

Source: https://www.nytimes.com/2025/04/04/world/europe/trump-tariffs-china.html