The High Stakes of US-EU Trade Relations

European Union Foreign Policy chief Kaja Kallas highlights the mutual dependencies between the US and Europe, stressing that a trade conflict would only benefit China. As she spoke before an informal EU leaders' meeting, she emphasized that both regions need each other critically.

European Union Foreign Policy chief Kaja Kallas has issued a stark warning about the potential downsides of a trade war between the United States and Europe, declaring that such a conflict would have no winners. Speaking on Monday, Kallas remarked that China would be the sole beneficiary in such a scenario.

Kallas emphasized the entangled economic relations between Europe and the United States, noting, "We are very interlinked. We need America, and America needs us as well." Her statement comes at a crucial moment, just before an informal retreat of EU leaders in Brussels, where critical economic discussions are expected.

Her comments underline a commonly held belief among EU officials that maintaining strong transatlantic relations is essential not just bilaterally but also in countering external global influences, notably from China.