President Donald Trump said this week that a trade deal with the European Union would “100% happen” as the continent looks to avoid the 20% tariffs set to be enacted come July.
But as China looks to navigate a world in which it operates under 145% tariffs, it is likely looking to expand its trade ties with the EU, and could look to interfere in Trump’s plans for an EU deal.
The sweeping tariffs enacted by Trump this year on essentially every U.S. trading partner, as well as blanket tariffs on imports like steel, aluminum and automobiles, have changed the way traditional allies view Washington — with some in Europe questioning the reliability of the longtime ally.
China could look to utilize any potential changes in geopolitical allegiances when it comes to circumventing the tariff war between the world’s two largest economies.
“Given the electoral politics in Europe, it may be hard for some European leaders to appear weak with Trump. Making a pivot to China — risky though it is — could be tempting,” Elaine Dezenski, senior director and head of the Center on Economic and Financial Power at the Foundation for Defense of Democracies, told Fox News Digital.
“Trump’s aggressive global tariffs have angered traditional allies and rebuilding that trust may be difficult, even though many in Europe are clear-eyed as to the risks of Chinese economic engagement,” she added. “However, given China’s economic pressures, it may be willing to offer a deal that Europe finds too hard to turn down.”