“There are no winners in trade wars,” Kallas said on the sidelines of a G7 meeting in Canada.
“Who is laughing on the side or looking at the side is China. It’s really benefiting from the U.S. having a trade war with Europe.”
Kallas affirmed the EU’s readiness to retaliate but urged restraint, noting trade wars often fuel inflation that hurts consumers.
“We keep a cool head and of course we are ready to act and defend our interest when we need to,” she added.
The warning follows Trump’s Jan. 31 pledge to journalists in the White House to slap tariffs on EU goods, a promise he reiterated on Feb. 3 to the BBC, vowing action “very soon.”
The salvo began on Feb. 1, when Trump imposed 25% tariffs on Canadian and Mexican imports and 10% on Chinese goods.
Canada’s PM Justin Trudeau hit back on Feb. 2 with matching 25% duties on U.S. products, effective Feb. 4, targeting food items.
China’s Finance Ministry responded on Feb. 4 with 15% tariffs on U.S. coal and LNG, plus 10% on oil, farm equipment, and some vehicles.
After talks with Mexico’s Claudia Sheinbaum and Trudeau, Trump paused those levies on Feb. 4, only to reverse course on Feb. 26, delaying them to April 2.
On March 4, he doubled China’s tariffs to 20%, citing Beijing’s failure to curb fentanyl flows.
The EU, braced for impact, mulled a “bazooka” tool against Silicon Valley, per a Feb. 5 Financial Times report.
Trump’s March 13 ultimatum — ax whiskey tariffs or face 200% duties on French and EU wines and spirits — marks the latest escalation.