Klaas Knot, a member of the European Central Bank’s Governing Council, said that if the United States imposes tariffs and launches a trade war, China may sell products to Europe at a discount.
According to Bloomberg, in an interview published by the Dutch newspaper Volkskrant on Monday (December 30), Knot said that in this case, China may start selling goods to Europe at lower and lower prices.
“Such a scene has already appeared in the steel market,” he said, “In this way, China can be said to be exporting deflation to us.”
Bloomberg reported that policymakers around the world are paying attention to the tariff measures that the United States may take after Trump returns to the White House in January. The incoming US president has vowed to impose tariffs on other countries, and China is his first target.
