President Trump’s tariffs make European Union and global companies at risk of losing access to the US market, prompting them to look to China. China is the second-largest consumer market and has had tense relations with the EU, but trade flows are declining. The EU is trying to negotiate with the US and seeking new trade agreements with countries like India, South Africa, and South Korea. The EU’s leaders have talked about engaging with China, but are also concerned about dumping by China and may take a tough stance. A US-EU divide could lead China to divert goods to the EU, worsening the already-strained relationship.
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