Allies feel the squeeze

European and other middle powers are racing to avoid becoming collateral damage from U.S.–China trade coercion, with the EU Chamber in China urging Brussels not to take a ‘passive’ role. (scmp.com) UK research notes Washington’s toolkit includes sweeping measures—reports even flag a possible 100% tariff on pharmaceuticals—while India is positioning itself to expand ties with the U.S., the EU and keep limited openings with China amid the disorder. (commonslibrary.parliament.uk) (dailypioneer.com)

Europe’s allies are trying to avoid getting trapped between Washington’s tariffs and Beijing’s export controls as the trade fight widens. (scmp.com) The European Union Chamber of Commerce in China said Brussels should not be a “passive recipient” of United States-China negotiations, after releasing a report on April 14 about China’s expanding export-control system. Chamber president Jens Eskelund said European companies keep ending up as “collateral damage” in disputes between bigger powers. (europeanchamber.com.cn) (scmp.com) Britain’s House of Commons Library said in a briefing published April 14 that the United States has imposed tariffs on most United Kingdom goods and created a more uncertain outlook for world trade. The paper says a 10% tariff applies to most other United Kingdom goods, while steel and aluminum tariffs reached 50% on June 4, 2025. (commonslibrary.parliament.uk) That same briefing says pharmaceuticals now enter the United States tariff-free from the United Kingdom under a bilateral deal, showing how Washington is using exemptions as leverage alongside broad duties. A separate April 7 legal note by Ropes & Gray said President Donald Trump signed a proclamation on April 2 imposing 100% tariffs on covered patented drugs and key inputs, with carve-outs for some products and jurisdictions. (commonslibrary.parliament.uk) (ropesgray.com) Washington is also widening pressure beyond tariffs. The Office of the United States Trade Representative said on March 12 it opened Section 301 investigations into 60 economies over forced-labor import rules, a list that covers some of the United States’ largest trading partners. (ustr.gov) (federalregister.gov) China’s side of the squeeze is export licensing on critical materials. A European Parliament research note says Beijing introduced two waves of rare-earth export controls in 2025, and the European Union was hit because those minerals are used in digital, green, and defense industries. (europarl.europa.eu) India is trying to turn that disruption into bargaining room. The Indian Express reported on April 15 that New Delhi will send a delegation to Washington from April 20 to resume trade talks, with both sides working toward an interim bilateral agreement after tariff changes delayed the process. (indianexpress.com) At the same time, India is building out other trade lanes. India Briefing reported that New Delhi concluded a free-trade agreement with the European Union in January 2026 and is now focused on ratification and implementation alongside other market-access deals. (india-briefing.com) The result is a world where middle powers are not choosing one side once; they are negotiating exemptions, licenses, and side deals sector by sector. Brussels, London, and New Delhi are all trying to keep market access to the United States without losing supply chains, sales, or political room elsewhere. (scmp.com) (commonslibrary.parliament.uk) (indianexpress.com)

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