On "Forbes Newsroom", Fellow at the European Foreign Relations Council, Liana Fix, discussed the concerns Europe has about the continued trade war between the U.S. and China.
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00:00Hi, everyone. I'm Maggie McGrath, senior editor at Forbes. On Monday, China warned other countries
00:10to not curb their trade with China in an attempt to curry favor with U.S. President Trump.
00:18Joining us to discuss this political landscape on a global level is Liana Fix. She is a fellow
00:24for Europe at the Council on Foreign Relations. She has an expertise on Germany and European
00:30foreign policy, but also European China policy. Liana, thank you so much for being here.
00:36Absolutely. Thank you for the invite.
00:38So U.S.-China trade relations has been a major point of news over the last several weeks,
00:45really ever since Liberation Day. But let's set the stage from your perspective as a European
00:50expert. Can you kind of describe what the last few weeks have been like for European countries as
00:57America has announced these massive tariffs? Yeah. So first of all, Europeans themselves
01:03are, of course, affected by the tariffs. Donald Trump has also announced tariffs of the European
01:07Union. Now the administration has been saying they're hopeful that a deal can be struck soon
01:12because the U.S. market is obviously a big market for the U.S. side. But then the problems between
01:18the U.S. and China, the wildly escalating trade and tariff war between the U.S. and China and the
01:23fact that they are still looking for an exit strategy out of this escalation spiral also has
01:28implications for Europe. Because if China doesn't have access to the U.S. market anymore, then China
01:34has become an export superpower. Something that Germany has been in the past has now been taken over by
01:40China. China is exporting massively and has huge overcapacities in many industrial goods and many
01:46consumer goods. China will look for other markets if it can't export to the United States. And Europe
01:52is concerned that it's going to be the one market that's still open and going to be flooded by Chinese
01:57products that can't be sold anymore to the United States.