The article discusses the economic fallout of the US-China trade war, highlighting China's substantial losses (approximately €500 billion annually) due to US tariffs. Expert Joerg Wuttke predicts higher prices for American consumers, particularly for electronics and appliances, impacting voters before upcoming elections.
Wuttke cautions the EU against its growing closeness to China while distancing itself from the US. He emphasizes the significantly larger investment base the EU has with the US (€2.2 trillion) compared to China (€170 billion), highlighting the US's crucial role as an investor rather than just an exporter for Europe.
The most alarming aspect is the potential for China to retaliate by restarting the flow of fentanyl, termed the 'kiss of death'. While fentanyl-related deaths in the US decreased by a quarter in 2024, the threat of renewed trafficking raises serious concerns. The article states that additional US tariffs on Chinese goods came into effect, with China allowing the deadline for tariff removal to pass.