President Donald Trump announced a new import tax on foreign-made cars in an escalation of his tariff-based trade policies that have shaken up the economy in recent weeks.

EU foreign policy chief Kaja Kallas told Bloomberg that China is the country that stands to benefit the most from a trade war between the U.S. and EU. Her comments come as the EU imposed 50% tariffs on American whiskey in retaliation for U.S. tariffs on steel and aluminum imports.