Europe urged to unite as US tariffs loom
- It is obvious that we must react - said the French Industry Minister Marc Ferracci, commenting on the threat posed by the US imposing tariffs on the European Union. Meanwhile, the country's Prime Minister warned that European countries must not fight against each other, as such actions will lead to "our disappearance."
Donald Trump imposed tariffs on Mexico, Canada, and China and announced a similar move toward the European Union. According to Marc Ferracci, it is evident that "we must react" if Trump imposes tariffs on Europe.
The French government calls for European cooperation
He added that a response should target products important to the negotiating partner and their country for it to be effective. In his view, the measures should impact the American economy, creating a credible threat that could be leveraged during negotiations.
The minister also stressed the need to move beyond naivety and take stronger measures to protect European industry better. He cautioned against beginning negotiations with concessions, stating that Europe should not simply agree to purchase more American products from specific industrial or agricultural sectors.
The Industry Minister urged the importance of maintaining unity and leveraging the strength provided by the common market, emphasizing that the United States cannot function without it.
French Prime Minister François Bayrou expressed a similar sentiment, questioning whether Europeans could work together or would continue acting against one another. He warned that if European nations failed to unite, they risked becoming irrelevant.
Meanwhile, when asked about Trump's remarks, French Minister for Foreign Trade Laurent Saint-Martin emphasized that Europe should not back down. He warned that if Europe's initial message to the United States, China, and the world is merely accepting the role of a consumer market without maintaining its own production, it would amount to losing the battle.
Trump imposes tariffs on Mexico, Canada, and China
On Saturday at 20:00 GMT, Donald Trump imposed a 25% tariff on Canadian goods and 10% on energy resources from that country. A 25% rate was also imposed on Mexico and 10% on China. This decision sparked enormous controversy - "The Wall Street Journal" called it the "dumbest trade war in history."
It is worth noting that according to economists' estimates, actions towards China may have significant consequences for the USA. "If the US imposed an additional 10 percent tariff on China and China responded in kind, US GDP would be £45 billion less over the four years of the second Trump administration, and £105 billionn less in China" - estimated the American Peterson Institute for International Economics in a report quoted by CNBC.
