Europe under threat of two trade wars, with the United States and China

Between two potential trade wars, the European Union (EU) is struggling to find a way forward. On the one hand, Donald Trump's United States is taxing its exports and threatening it with astronomical new tariffs. On the other, Xi Jinping's China is increasing barriers to entry into its market, while becoming increasingly aggressive.

European Trade Commissioner Maros Sefcovic returned from Washington on Friday, July 18, after meeting with Commerce Secretary Howard Lutnick, Trade Representative Jamieson Greer , and Kevin Hassett, Donald Trump's economic adviser. However, the latest visit failed to advance negotiations.

Since returning to the White House, Donald Trump has increased tariffs on cars by 25% and on steel and aluminum by 50%. He has introduced 10% surcharges on a wide range of products, which could rise to 30% on Friday, August ^1st if no agreement is reached, and has warned that he could target pharmaceuticals, in particular. At this stage, the Commission, which is negotiating on behalf of the 27 member states, has not obtained any concessions.

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