Europe predicts losses due to US-China trade war

The trade war of the administration of US President Donald Trump with China may lead to losses in Europe. Piero Cipollone, a member of the European Central Bank (ECB) board of governors, said on February 6.

"What worries me most is that President Trump could start a full-scale trade war with China," Reuters quotes Cipollone as saying.

He said this is a "serious threat" because China has 35% of the world's manufacturing capacity. He added that China will start looking for other markets because of the restricted access to the U.S. and could "impose dumping prices on Europe, curbing its growth."

How high is the threat of a trade war between the US, EU and China. Parsing

On February 4, new duties on imports from the PRC came into force in the US. The size of the tax is 10%. In general, lower tariffs were introduced against China than planned.

Donald Trump on February 1 signed an executive order on the introduction of trade tariffs of 25% on goods from Canada, China and Mexico. Then he also promised to impose duties on goods from the EU. With this decision, Trump seeks to reduce the flow of the opioid fentanyl across the border, as well as the flow of migrants.

On the same day, he indicated that at the current moment China, Canada and Mexico will not be able to do anything to prevent the impending imposition of duties. Canada is responsible for significant amounts of drug smuggling into the US, he said.

Later, Chinese economist Andrew Leung told Izvestia that the tariffs imposed by Trump on imports of goods from China and Mexico will lead to an increase in consumer prices in the United States itself.