European business sector warns U.S. tariffs will hurt both sides

People from the European business sector have warned that implementation of the tariffs threatened to impose by U.S. President Donald Trump on European exports to the U.S. will hurt the interests of both sides and end up bringing heavier payment burden on U.S. residents.

Trump has recently threatened to slap 25 percent tariffs on imports from the European Union, claiming the 27-country bloc was created to "screw the United States". In response, the EU said it would react firmly and immediately against unjustified barriers to free and fair trade.

European Commission Spokesman Olof Gill said that high level contacts were taking place between the U.S. administration and the EU, according to reports from European media.

According to various reports, the EU is also working on retaliation measures. A list of products already targeted in the trade dispute between the Trump administration in 2018 and the EU on aluminium and steel is ready.

An arsenal of anti-coercion measures could also be applied, but the decision-making process would take longer. Such measures could cover services, or trade-related aspects of intellectual property rights.

The U.S. tariffs have been a focal point of discussion within the European business sector, with many in the industry believing that the Trump administration's decision to hit EU goods with tariffs is unjustified and that it will not only harm the interests of U.S. trade partners but are also likely to backfire in the long run.

"It can bring inflation because if the products are more expensive, because [if they are] produced in the United States, that will bring more burden for the local population. It will also impact exports from the United States to other countries. Because if the other countries take retaliatory measures, that means that American products will be more expensive in these countries. It will not be in favor of the United States. It will be a lose-lose party. Everyone will lose on the long term," said Bernard Dewit, chairman of Belgian-Chinese Economic and Commercial Council (BCECC).

"I think if President Trump keeps on imposing tariffs, then they will isolate themselves from the [rest of the] world, from the global geopolitical landscape. And so yes I think it will be a pretty heavy burden to wear overtime for the U.S.," said Deschamps from Belgium's business sector.

European business sector warns U.S. tariffs will hurt both sides

European business sector warns U.S. tariffs will hurt both sides

European business sector warns U.S. tariffs will hurt both sides

European business sector warns U.S. tariffs will hurt both sides

China will strengthen fiscal and financial coordination to amplify policy effectiveness, experts said as the draft central and local budgets for 2026 were unveiled on Friday at the ongoing fourth session of the 14th National People's Congress.

According to the draft central and local budgets for 2026, 1.3 trillion yuan (190 billion U.S. dollars) of ultra-long special treasury bonds will be issued to provide continued support for the implementation of major national strategies and security capacity-building in key areas and for large-scale equipment upgrades and consumer goods trade-in programs.

Ultra-long special treasury bonds totaling 800 billion yuan will be allocated to support the implementation of major national strategies and security capacity-building in key areas, and 250 billion yuan in ultra-long special treasury bonds will be earmarked for consumer goods trade-in programs.

The country will refine these programs in terms of their scope and subsidy standards, and continue to support the scrapping and replacement of automobiles, home appliance trade-in schemes, and purchases of new digital and smart products.

China will also set up a 100-billion-yuan fiscal-financial coordination fund to boost domestic demand. The fund will support consumption and private investment through loan interest subsidies, financing guarantee, and risk compensation.

"Fiscal and monetary policies are the two major macroeconomic tools for macro-control, and their coordination is crucial. For instance, fiscal funds primarily serve as a guiding role, while financial institutions provide the capital. When fiscal guidance and financial resources are combined, the synergistic effect creates a result greater than the sum of its parts," said Yang Zhiyong, director of the Chinese Academy of Fiscal Sciences.

"By leveraging interest subsidies, we can mobilize substantial credit from financial institutions, thereby naturally stimulating consumption. The Ministry of Finance, in collaboration with the People's Bank of China, has introduced highly innovative measures, such as providing guarantees for the issuance of corporate bonds by small and medium-sized enterprises (SMEs), and compensating investors for losses. I believe the leveraging effect, making minimal efforts for maximum results, will become even more potent," said Yao Dongmin, director of the Center for China Fiscal Development under the Central University of Finance and Economics.

China's top legislature opened its annual session on Thursday morning at the Great Hall of the People in Beijing, with Chinese President Xi Jinping and other Party and state leaders attending the opening meeting alongside more than 2,700 NPC deputies. This year's NPC session is scheduled to run till March 12.

China to strengthen fiscal, financial coordination to amplify policy effectiveness: experts