The European Union will not seek to soften the impact of Donald Trump’s tariffs by boosting trade ties to China, even if talks with the United States break down, according to Poland’s trade minister.
Michał Baranowski told Euractiv that the EU’s relationship with Beijing is “independent” of the bloc’s links to Washington, which has imposed sweeping levies on European exports since Trump’s return to the White House in January.
“What certainly is not happening is that the EU will say: ‘Oh, it’s too bad that it's not working with the US, we're just going to switch to China',” said Baranowski, whose country currently holds the rotating Council presidency.
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Beijing’s charm offensive, however, has been thwarted by the failure to address persistent sources of friction in the EU-China relationship, which include the increasing competitiveness of Chinese exporters and Beijing’s deepening ties with Russia.
EU states agreed this week to limit the participation of Chinese medical device suppliers in bids for public contracts, for instance, on the grounds that European companies are discriminated against in China.
And ties have been further eroded by Beijing’s recent imposition of export controls on a range of critical goods, including magnets and rare earths, which are used to manufacture products such as washing machines, semiconductors, and cars.
Baranowski vociferously condemned Beijing’s export restrictions, arguing they were akin to “pouring oil [on] the fire” of the EU-China relationship.
The measures are “certainly putting pressure on European economies”, he added, noting that they are also hampering Europe’s ability to revamp its defence-industrial base to counter Russia’s growing military threat.
Echoing the minister’s remarks, EU Trade Commissioner Maroš Šefčovič urged Beijing on Thursday to “address systemic issues affecting Europe and other partners”, including export restrictions, market access barriers, and state-driven “overcapacities”.
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Baranowski similarly affirmed that EU-US negotiations “are absolutely making progress”, adding that things look “a little bit better the more USTR [Greer] gets fully involved, the more technical it becomes”.
Although he refused to elaborate on what the eventual contours of a US-EU trade deal would look like, Baranowski suggested that it would be “more ambitious” than a previous US trade agreement with the UK.
That deal, reached last month, offers British exporters some exemptions from Trump’s 'sectoral' tariffs on steel, aluminium, and cars. However, it leaves the 10% ‘universal’ levy - which is currently being challenged in US courts - in place.
Beijing has also denounced the US-UK deal, which it claims will restrict Chinese investments into Britain.
“We look for an ambitious deal," Baranowski said, "more ambitious than the other deals we have seen so far."
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At the same time, Trump’s decision on Wednesday to double the levies on steel and aluminium to 50% was “not helpful” for trade negotiations, Baranowski added.
“We are making progress, and having the other side, in this context the US, coming out with new tariffs is just not helpful for us to keep these negotiations productive,” he said.
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Brussels is also developing a separate €95 billion package that could hit American aircraft, wine, cars, and machinery.
“As I like to say: 'We speak softly, and we carry a big stick',” said Baranowski. “This stick is on the table.”