“When we focus our attention on tariffs between partners, it diverts our energy from the real challenge — one that threatens us all,” von der Leyen said in a pointed comment aimed squarely at Trump, who sat near her at the G7 roundtable.
“On this point, Donald is right — there is a serious problem,” von der Leyen added, encouraging the U.S. president to join forces with his allies to address China’s trade imbalances, rather than impose tariffs on his allies.
Brussels has tried for months to convince Trump not to target the EU in his trade war, arguing that cooperation on China’s industrial policy is the best way to secure an even trade playing field and attempting to flatter and cajole the American president into withdrawing his punishing levies.
China has focused on “undercutting intellectual property protections, massive subsidies with the aim to dominate global manufacturing and supply chains. This is not market competition — it is distortion with intent,” von der Leyen said.
The Commission chief warned against what she called “a new China shock,” accusing Beijing of flooding global markets with cheap state-subsidized products, and urged G7 countries to tackle its dominance in the raw materials sector.
Von der Leyen brought a prop to the meeting: a permanent magnet, which is crucial to Europe’s central industries, such as car and wind turbine production.