China stands to gain from the ongoing trade wars between the US and its allies, the European Union’s foreign policy chief Kaja Kallas said in an interview with Bloomberg Television.

Trump, who imposed a wave of tariffs on China in his first term, has slapped another 20% duty on a wide swath of Chinese goods this year. Beijing, the top buyer of American agricultural products, recently imposed retaliatory tariffs of 10% to 15% on a range of U.S. exports like chicken, corn, soybeans and beef.

This comes as BMW along with other European carmakers are bracing for impact from US President Donald Trump’s planned tariffs on vehicles imported to the US.

At the Group of Seven (G7) meeting in Canada, European Union foreign policy chief Kaja Kallas said the real winner of the ongoing tariff war is China.