Europe Caught in the Middle as Trump Threatens China

European leaders were largely silent after President Trump threatened to impose another $100 billion in tariffs on Chinese goods. But watching from a safe distance as China and the United States argue is not an option for Europe. Its economy is too deeply entwined with both.

“What can they do in terms of staying out of the crossfire?” said Adam Slater, lead economist at Oxford Economics in Britain. “Not a lot.”

Although Mr. Trump’s threats are aimed at China, Europe is certain to suffer collateral damage if the president follows through. A spiraling war of tariffs and counter-tariffs would interfere with the global flow of raw materials and components for manufactured goods, disrupting the European economy. And some European companies, like the German carmaker BMW,…

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