EU and China Unite Against U.S. Tariff Turmoil

European Commission's Ursula von der Leyen and China's Premier Li Qiang discuss countermeasures to U.S. tariffs. They advocate for a reformed free trade system and propose mechanisms to prevent trade diversion. China's relations with the U.S. hit a snag with Trump's proposed increased tariffs, potentially impacting global markets.

In a significant development, European Commission President Ursula von der Leyen has called on China to cooperate towards solving issues arising from U.S. import tariffs. The plea came during a phone call with Chinese Premier Li Qiang, highlighting the gravity of the situation initiated by U.S. President Donald Trump's sweeping tariff impositions.

Amid concerns over possible trade redirection, the two leaders discussed setting up a mechanism to track trade shifts from the U.S. to Europe, fearing the infiltration of cheaper Chinese exports. Premier Li emphasized China's commitment to strengthening political trust and navigating concerns through dialogue.

The tension escalated as Beijing rebuked Trump's threats to increase tariffs on Chinese imports, labeling it as 'blackmail.' The European Union, facing repercussions across global markets, is considering its own set of counter tariffs, raising alarms of a potential global economic downturn.

(With inputs from agencies.)