Johan Van Overtveldt: “The US Is Distracting Us from the Real Issue—China”

Europe needs to take a more assertive stance on trade issues—but without shooting itself in the foot. That’s the message from Johan Van Overtveldt, Member of the European Parliament and former Belgian Finance Minister, in an interview with De Ochtend. He shared his perspective on the recent developments in trade relations with the United States. “The real problem is China. But Trump’s actions often make us forget that.”

Trump Flips, Von der Leyen Negotiates

Last week, U.S. President Donald Trump announced a 50% tariff increase on European goods. Shortly after, he walked back the tough rhetoric following a phone call with European Commission President Ursula von der Leyen. “Yet another plot twist,” Van Overtveldt remarked. “One day it’s: ‘This is the deal, period.’ The next, everything’s back on the table. It’s hard to formulate a clear strategy under those conditions.”

Still, he praised von der Leyen’s response. “She immediately opted to enter talks on lowering tariffs. That was a very strong opening move.”

Stand Firm—but Stay Smart

Van Overtveldt acknowledges the calls for a firmer European response but warns against overreaction. “Some economists argue: ‘Stand your ground. If Trump won’t negotiate, we’ll look elsewhere.’ There’s merit to that. But look at the numbers. The EU exports more goods to the U.S. than it imports. But when it comes to services, the balance tips the other way.”

And that’s where the challenge lies: “If we really want to strike back effectively, we’d have to target the big tech companies and the digital services they provide. But we must be careful not to harm ourselves in the process—these services are crucial to the functioning of our entire economy.”

Europe Needs to Look in the Mirror Too

Van Overtveldt also stresses the importance of strengthening the EU’s internal market. “According to the IMF The International Monetary Fund (IMF), established in 1945, focuses on monetary issues. The global organisation is governed by and accountable to the 188 member countries. In addition to financial stability, monetary cooperation and international trade, the IMF promotes and supports employment, sustainable economic growth and combating poverty. In this regard, it provides loans, technical assistance, specialised training courses and advice to governments. It also monitors financial trends. IMF , there are still internal trade barriers of 40% for goods and up to 110% for services within the EU. If we started tackling those seriously, we’d be far less dependent on the whims and demands of people like Mr. Trump.”

“The Real Threat to Free Trade? China.”

In Van Overtveldt’s view, America’s behavior is drawing attention away from the bigger threat: China. “That country systematically shields its market and heavily subsidizes its industries. It creates unfair competition that goes against the rules of global free trade.”

“Pretty much everything coming out of Washington right now has the effect of distracting us from the fact that China has been—and still is—the major disruptor of the international trade system,” he concluded.