The European Union's foreign policy chief says tariffs between Western countries only serve China's interests and is calling for higher defence spending to keep Russia in check.

There are no winners in trade wars,” Kallas said on the sidelines of a G7 meeting in Canada. “Who is laughing on the side or looking at the side is China. It’s really benefiting from the U.S. having a trade war with Europe.

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.

China on Thursday urged Washington to engage in a "dialogue" with Beijing on how to resolve President Trump's spiralling trade war and geopolitical tensions.