China 'laughing' at US-Europe trade wars – chief diplomat Kallas

A trade war pitting the U.S. against the EU would leave no winners — except China, Kaja Kallas, the European Union’s top diplomat, cautioned in a Bloomberg interview on Thursday.

"Who is laughing on the side or looking at the side is China. It’s really benefiting from the US having a trade war with Europe," she said, as tensions spike over President Donald Trump’s latest salvo: a threatened 200% tariff on wine, champagne, and other alcoholic beverages from France and EU nations.

The move follows EU plans to tax American whiskey, itself a retaliation to Trump’s earlier duties on European steel and aluminum. Trump’s March 13 ultimatum demanded the EU drop its whiskey tariffs or face the steep alcohol levies, intensifying a cycle of reprisals.

Kallas stressed the EU’s readiness to counter but urged caution, warning that such conflicts typically drive inflation, hitting consumers hardest. 

"We keep a cool head and of course we are ready to act and defend our interest when we need to," she affirmed.