China Laughs At U.S. Trade Wars As It Benefits From Trump’s Europe Tariffs

China stands to gain the most from a trade war between the U.S. and the EU, according to EU foreign policy chief Kaja Kallas, who spoke to Bloomberg as tensions between Washington and Brussels escalated.

There will be no winner in a trade or tech war.

Kallas, who previously served as Estonia’s first female prime minister, told Bloomberg during a G7 meeting in Canada that China is “laughing” at the U.S.-EU tariff dispute.

“Who is laughing on the side or looking at the side is China,” she said. “It’s really benefiting from the U.S. having a trade war with Europe.”

The trade tensions escalated after the U.S. imposed a 25% tariff on imported steel and aluminum. In retaliation, the EU slapped a 50% tariff on American whiskey. In response, President Donald Trump threatened a 200% tariff on European alcoholic imports, including champagne and wine.

Trump has since doubled down on his position, telling reporters he would not reconsider the tariffs set to take effect on April 2. He urged the EU to drop its tariffs on American whiskey or face further retaliation.

“I’m not going to bend at all,” he said.

Meanwhile, Kallas said the EU would also stand firm in the dispute. “We keep a cool head, and of course, we are ready to act and defend our interests when needed,” she stated.

At a press conference on Friday, Chinese foreign ministry spokesperson Mao Ning declined to comment directly on U.S.-EU relations, stating only that China was “not at issue.” She added, “There will be no winner in a trade war or tech war.”