European Commission President Ursula von der Leyen urged Chinese Premier Li Qiang to avoid "further escalation" following the US’s substantial increase in import tariffs during a phone call on Tuesday.
Von der Leyen called for a negotiated solution to the current situation, emphasising the importance of avoiding further escalation, according to a Commission press release.
She stressed that Europe and China must take responsibility and support reforms leading to a "free" and "fair" global trade system "based on a level playing field."
Global trade has been in turmoil since President Donald Trump announced a dramatic increase in customs tariffs on imports from the rest of the world last week. China, facing a 34% tariff hike, retaliated with an equally high tariff. Trump then threatened to impose additional tariffs of 50%.
"If the United States insists, China will fight them to the bitter end," the Chinese Ministry of Commerce responded on Tuesday.
Von der Leyen also highlighted to Li the crucial role of China in addressing potential trade shifts due to tariffs, especially in sectors already suffering from global overcapacity.
The Commission is concerned that exports from third countries facing US tariffs could flood the European market. The two leaders discussed setting up a mechanism to monitor and address these trade shifts.
Finally, Von der Leyen reminded Li that "urgent structural solutions" are needed to rebalance bilateral trade relations between the EU and China. She also called for "better access for European companies, products, and services to the Chinese market," the statement said.
