Description: Chinese President Xi Jinping met with the Spanish Prime Minister Pedro Sanchez in Beijing as the two countries aimed at strengthening trade and economic ties amid the effect of Trump’s tariffs. Sanchez supported China’s claims that tariffs would damage the global economy and that there are no winners in trade wars while pledging to lean towards the country for future investments in various sectors. Spain’s lean towards China comes at a crucial time of uncertainty caused by the tariff trade war, as the country is looking to devise a partnership with the Chinese critical raw materials market as most EU countries are divesting from fossil fuels as a source for energy supply. The meet was heavily criticized by the White House as US Treasury Secretary Scott Bessent stated that any country that moves closer to China is automatically weaning off any alliances with the US.
Impact: The effect of the tariffs has immediately taken shape as countries and regions aim at facilitating closer multilateral cooperation as a natural response to the US transactional and conditioning foreign policies. Closer strategic ties between Europe and China were expected as both European countries and China would aim towards considerably balancing out the effects of the tariffs on international trade. Trump’s back and forth miscalculations with the tariffs are looking to endanger key strategic ties with Europe and further plunge China in a pole position to enhance trade with the continent and other countries with emerging markets.