ISTANBUL

European Commission President Ursula von der Leyen cautioned against further escalating the situation with regard to US tariffs during a phone call with the Chinese premier on Tuesday.

“The President called for a negotiated resolution to the current situation, emphasizing the need to avoid further escalation,” the European Commission said in a statement, as von der Leyen spoke to Li Qiang.

The European Commission chief stressed the “responsibility” of China and Europe to support a “strong reformed trading system, free, fair and founded on a level playing field.”

“The President underscored the vital importance of stability and predictability for the global economy,” the readout said, adding that she pointed out to China’s “critical role” in addressing possible trade diversion caused by tariffs.

The Chinese premier and von der Leyen discussed establishing a mechanism to monitor potential trade diversion and respond “duly” to any developments.

“She also recalled the urgency for structural solutions to rebalance the bilateral trade relationship and ensure better access for European businesses, products and services to the Chinese market,” the statement said.

The EU official also reiterated the need for a “just and lasting peace” in Ukraine, underlining that the peace conditions should be determined by Kyiv.

“She invited China to intensify its efforts to contribute meaningfully to the peace process,” the statement said.

US President Donald Trump last week announced he would hit China with an additional 34% tariff on top of a 20% levy imposed earlier this year, as part of his "reciprocal" tariffs on several countries. He also threatened additional tariffs of 50% if Beijing does not withdraw its retaliatory measures.

On EU imports, Trump has imposed a 20% tariff.