ABOARD THE PRIME MINISTER’S PLANE TO BEIJING — Keir Starmer rejected his
Canadian counterpart’s call for mid-sized countries to band together in the face
of unpredictable global powers — and insisted his “common sense” British
approach will do just fine.
The British prime minister arrives in China Wednesday for a trip aimed at
rebooting the U.K.’s relationship with the Asian superpower. He’s the latest
Western leader to make the visit — which will include a meeting with Chinese
President Xi Jinping — after trips by Carney and France’s Emmanuel Macron.
Carney used a searing speech at the World Economic Forum last week to warn of
the “rupture” caused by “great powers” acting in their own self-interest. While
he did not namecheck Donald Trump’s administration, the speech riled the U.S.
president, who insisted: “Canada lives because of the United States.”
The Canadian PM had called for middle powers to work together to “build
something bigger, better, stronger, more just.”
Starmer was pressed on those remarks on board his flight to China Tuesday. Asked
whether he agreed that the old global order is dead — and whether smaller powers
need to team up to push back at the U.S. and China, Starmer defended his own
policy of trying to build bridges with Trump, Xi and the European Union all at
once.
“I’m a pragmatist, a British pragmatist applying common sense, and therefore I’m
pleased that we have a good relationship with the U.S. on defense, security,
intelligence and on trade and prosperity,” he says. “It’s very important that we
maintain that good relationship.”
He added: “Equally, we are moving forward with a better relationship with the
EU. We had a very good summit last year with 10 strands of agreement.
“We’ll have another summit this year with the EU, which I hope will be
iterative, as well as following through on what we’ve already agreed.
“And I’ve consistently said I’m not choosing between the U.S. and Europe. I’m
really glad that the UK has got good relations with both.”
Starmer’s government — which faces pressure from opposition parties back home as
it re-engages with China — has stressed that it wants to cooperate, compete with
and challenge Beijing when necessary, as it bids to build economic ties to aid
the sputtering U.K. economy.
“Obviously, China is the second biggest economy in the world, one of our biggest
trading partners,” the British PM — who is flying with an entourage of British
CEOs and business reps — said Tuesday. “And under the last government, we veered
from the golden age to the ice age. And what I want to do is follow through on
the approach I’ve set out a number of times now … which is a comprehensive and
consistent approach to China.
“I do think there are opportunities, but obviously we will never compromise
national security in taking those opportunities.”
Tag - Trade Defense
STRASBOURG — The European Parliament plans to ask the European Commission on
Monday to start the process for activating the bloc’s most powerful trade weapon
against the United States, a senior trade lawmaker said on Wednesday.
“I expect that the coordinators will decide to request to start the
investigation procedure of the [Anti-Coercion Instrument]. Of course, between
now and Monday there’s a lot of time and we will see what will happen,” trade
committee chair Bernd Lange told reporters in Strasbourg.
The statement by Lange, a German Social Democrat, comes as relations between the
EU and the United States hit an all-time low, following President Donald Trump’s
threats to seize Greenland, a self-governing Danish territory. Trump has also
threatened to impose tariffs on European countries that have rallied to
Copenhagen’s side.
Resolve within the bloc is growing to hit back against Trump, with the
Parliament also formally freezing on Wednesday the ratification of the EU-U.S.
trade deal that was struck last summer.
“Europe must speak the language Trump understands. We are ready to move forward
with the ACI. I would have preferred a decision today, but I hope for a strong
and united statement on Monday. We don’t have time to waste,” said Swedish MEP
Karin Karlsbro of the liberal Renew group.
Jörgen Warborn, the European People’s Party top trade MEP, took a more cautious
line, reflecting the party’s transatlantic leanings. “It’s too early to say” if
he will agree to ask Commission to launch the ACI, Warborn told reporters.
Further, Warborn told POLITICO: “We now need to coordinate further and discuss
which options we have in case of further actions. Nothing is off the table.”
EU leaders are toughening their position and want the European Commission to
ready its trade “bazooka,” with Germany joining France in saying it will ask the
Commission to explore unleashing the tool at an emergency meeting of leaders on
Thursday unless Trump walks back on his threats, POLITICO reported on Tuesday.
The trade weapon, which can be deployed at the request of any affected party,
including the European Parliament, is one of the EU’s main levers against the
U.S.: It includes a wide range of possible measures such as imposing tariffs,
restricting exports of strategic goods, or excluding U.S. companies from
tenders. A decision to use the instrument would not be taken lightly because it
would have a significant impact on the EU economy.
This story has been updated.
BERLIN — German politicians are cautiously reopening the debate over a digital
tax on U.S. tech companies as President Donald Trump renews his tariff threats.
That shift is driven less by the chancellery than by growing pressure inside
Chancellor Friedrich Merz’s governing coalition and his conservative bloc.
Berlin is not rushing any formal proposals for how the EU should respond after
Trump on Saturday threatened tariffs on eight countries including Germany over
Greenland.
Government talks have focused on restraint, with officials emphasizing the need
to stay calm and avoid emotional reactions. At a press conference Monday, a
government spokesperson said Merz was “a rational person who does not put a
stamp on international relations.” Merz, who leads the Christian Democratic
Union (CDU), has argued for a measured response.
Yet Vice Chancellor Lars Klingbeil, a Social Democrat, has left the door open to
tougher options. “We should now examine the use of these measures,” he said,
referring to the EU’s trade defense toolbox, including the Anti-Coercion
Instrument — the bloc’s untested trade bazooka — that could be used to target
services such as tech.
While Merz remains reserved, senior lawmakers from within his Christian Democrat
camp are openly advocating retaliation aimed at U.S. tech firms.
Sepp Müller, the deputy parliamentary leader of the CSU and its Bavarian sister
party, called on Monday for a digital tax and even import bans on U.S. products.
“The issue will certainly come onto the table,” Ralph Brinkhaus, the
conservative group’s digital policy spokesperson, told POLITICO — while
stressing that any move should be “reflected and thought through.”
Klingbeil’s Social Democrats appear willing to revisit earlier commitments. SPD
digital policy lawmaker Johannes Schätzl told POLITICO that previous agreements
— in which the EU committed not to introduce a digital infrastructure levy — now
need to be reassessed.
Draft proposals for a German digital tax, prepared by Culture Minister Wolfram
Weimer, have been sitting in the Finance Ministry since December, according to
people familiar with the process.
Klingbeil’s ministry has previously weighed whether such a move would
unnecessarily antagonize Washington, and declined to say whether that assessment
has now changed.
For now, the government’s official position remains cautious, even as the
renewed tariff threat reopens a debate Berlin has long tried to keep on hold.
Digital Minister Karsten Wildberger, in comments to POLITICO, warned against
public escalation. “It is important not to constantly make announcements, but
first to enter into dialogue,” he said, referring to the idea of activating the
Anti-Coercion Instrument.
Larissa Kögl contributed to this report.
Danish Prime Minister Mette Frederiksen hailed the support Denmark and Greenland
are getting from European countries over U.S. President Donald Trump’s threats
to impose new tariffs in his bid to gain control of the Arctic island.
“I am pleased with the consistent messages from the rest of the continent:
Europe will not be blackmailed,” Frederiksen wrote in a statement on Sunday
reported by the BBC and other media.
“The Kingdom of Denmark is receiving great support,” she wrote, describing how
she has been in “intensive dialogue” with allies including the U.K., France and
Germany.
“We’re not the ones looking for conflict,” Frederiksen stated. “At the same
time, it is now even clearer that this is an issue that reaches far beyond our
own borders,” she added.
Swedish Prime Minister Ulf Kristersson was one of Frederiksen’s colleagues
stressing that European countries “will not let ourselves be blackmailed.”
“This is an EU issue that affects many more countries than those now being
singled out,” Kristersson said in a post on X on Saturday.
Frederiksen’s comments on Sunday came after Denmark, Finland, France, Germany,
the Netherlands, Norway, Sweden, and the U.K. — the eights countries targeted by
Trump’s tariff threat — banded together to defend the “pre-coordinated Danish
exercise” in Greenland that was cited by Trump in his Truth Social post about
the new tariffs.
“It poses no threat to anyone,” the capitals argued, reaffirming that they
“stand in full solidarity with the Kingdom of Denmark and the people of
Greenland.” The U.S. threats of tariffs “risk a dangerous downward spiral,” the
countries added.
French President Emmanuel Macron will ask the EU to activate the bloc’s
so-called trade “bazooka” — the Anti-Coercion Instrument — in response to U.S.
President Donald Trump’s tariff threats over Greenland.
“He will be in contact all day with his European counterparts and will ask, in
the name of France, the activation of the Anti-Coercion Instrument,” Macron’s
office said on Sunday.
The instrument offers the EU various punitive trade measures that can be taken
against trade rivals that try to threaten the bloc. Those measures include
restrictions on investment and access to public procurement schemes, as well as
limits on intellectual property protections.
On Saturday, Trump threatened to impose tariffs on European countries that
oppose his plans to take control of Greenland. EU ambassadors are convening an
emergency meeting later Sunday to respond to the tariff threat.
Macron responded later Saturday by saying: “Tariff threats are unacceptable.”
“No intimidation or threat will influence us,” Macron said in a post on X.
“Europeans will respond in a united and coordinated manner … We will ensure that
European sovereignty is upheld,”
BRUSSELS — The European Parliament’s leading trade lawmakers on Wednesday
postponed a decision on whether to freeze a U.S. trade deal over Donald Trump’s
threat to annex Greenland.
MEPs are due to hold a vote on Jan. 26, laying out the European Parliament’s
position on lifting tariffs on U.S. industrial goods — one of the key planks of
a deal struck between Brussels and Washington last summer. But some MEPs, angry
at Trump’s behavior, don’t want the vote to go ahead, thereby freezing the
decision on lifting the tariffs.
But at a meeting of lawmakers leading on the topic, they decided to delay taking
a decision on whether to postpone or go ahead with the vote, awaiting the
outcome of high-stakes meetings between Washington, Nuuk and Copenhagen taking
place later Wednesday.
“We are not in a position to move the agreement to a vote today,” lead trade
lawmaker Karin Karlsbro, of the liberal Renew Europe, told POLITICO, adding that
clarity from the U.S. on Greenland was essential.
Discussions will continue next Wednesday, the chair of the international trade
committee, Bernd Lange, told POLITICO as he left the room.
Political groups are divided over what to do in response to Trump’s threats to
annex European territory.
The Socialists and Democrats, of which Lange is a member, are leaning toward
freezing the vote on the trade agreement.
“One camp is more like, OK, let’s cooperate with the U.S. in order to get the
maximum out, and there’s the other camp that says, OK we also need to show teeth
and not give in on everything,” explained Green lawmaker Anna Cavazzini, who is
also the chair of the internal market committee.
Cavazzini, who is in favor of freezing the deal, added that lawmakers agreed to
delay the decision to “observe the global situation,” adding that the groups
also need to agree on specific clauses in the final Parliament text.
The U.S. deal “will not be postponed,” assured EPP lawmaker Željana Zovko,
telling POLITICO on Wednesday that any delay would hurt businesses as it would
bring instability to transatlantic relations, while only Russia and China would
benefit from it.
Under the deal struck in July, the EU committed itself to legislation lifting
tariffs on U.S. industrial goods and lobsters, in exchange for Washington
reducing tariffs on European cars.
The deal is seen as lopsided in favor of Washington across party lines, but
lawmakers were willing to put up with it in exchange for having Trump commit to
protecting European security. As Greenland annexation threats continue, some no
longer see the point of the deal.
While the U.S. has upheld its end of the bargain on the car tariffs; the EU, so
far, has not, because its institutions must still approve their positions on the
Commission’s proposal. The lengthy process has already tested Washington’s
patience, with Trade Representative Jamieson Greer telling POLITICO in December
that the U.S. wouldn’t grant further tariff exemptions unless the EU keeps its
end of the bargain.
After the Council of the EU agreed on its position in late November, pressure is
rising on the European Parliament to vote on its own stance.
Europe’s chemical industry has reached a breaking point. The warning lights are
no longer blinking — they are blazing. Unless Europe changes course immediately,
we risk watching an entire industrial backbone, with the countless jobs it
supports, slowly hollow out before our eyes.
Consider the energy situation: this year European gas prices have stood at 2.9
times higher than in the United States. What began as a temporary shock is now a
structural disadvantage. High energy costs are becoming Europe’s new normal,
with no sign of relief. This is not sustainable for an energy-intensive sector
that competes globally every day. Without effective infrastructure and targeted
energy-cost relief — including direct support, tax credits and compensation for
indirect costs from the EU Emissions Trading System (ETS) — we are effectively
asking European companies and their workers to compete with their hands tied
behind their backs.
> Unless Europe changes course immediately, we risk watching an entire
> industrial backbone, with the countless jobs it supports, slowly hollow out
> before our eyes.
The impact is already visible. This year, EU27 chemical production fell by a
further 2.5 percent, and the sector is now operating 9.5 percent below
pre-crisis capacity. These are not just numbers, they are factories scaling
down, investments postponed and skilled workers leaving sites. This is what
industrial decline looks like in real time. We are losing track of the number of
closures and job losses across Europe, and this is accelerating at an alarming
pace.
And the world is not standing still. In the first eight months of 2025, EU27
chemicals exports dropped by €3.5 billion, while imports rose by €3.2 billion.
The volume trends mirror this: exports are down, imports are up. Our trade
surplus shrank to €25 billion, losing €6.6 billion in just one year.
Meanwhile, global distortions are intensifying. Imports, especially from China,
continue to increase, and new tariff policies from the United States are likely
to divert even more products toward Europe, while making EU exports less
competitive. Yet again, in 2025, most EU trade defense cases involved chemical
products. In this challenging environment, EU trade policy needs to step up: we
need fast, decisive action against unfair practices to protect European
production against international trade distortions. And we need more free trade
agreements to access growth market and secure input materials. “Open but not
naïve” must become more than a slogan. It must shape policy.
> Our producers comply with the strictest safety and environmental standards in
> the world. Yet resource-constrained authorities cannot ensure that imported
> products meet those same standards.
Europe is also struggling to enforce its own rules at the borders and online.
Our producers comply with the strictest safety and environmental standards in
the world. Yet resource-constrained authorities cannot ensure that imported
products meet those same standards. This weak enforcement undermines
competitiveness and safety, while allowing products that would fail EU scrutiny
to enter the single market unchecked. If Europe wants global leadership on
climate, biodiversity and international chemicals management, credibility starts
at home.
Regulatory uncertainty adds to the pressure. The Chemical Industry Action Plan
recognizes what industry has long stressed: clarity, coherence and
predictability are essential for investment. Clear, harmonized rules are not a
luxury — they are prerequisites for maintaining any industrial presence in
Europe.
This is where REACH must be seen for what it is: the world’s most comprehensive
piece of legislation governing chemicals. Yet the real issues lie in
implementation. We therefore call on policymakers to focus on smarter, more
efficient implementation without reopening the legal text. Industry is facing
too many headwinds already. Simplification can be achieved without weakening
standards, but this requires a clear political choice. We call on European
policymakers to restore the investment and profitability of our industry for
Europe. Only then will the transition to climate neutrality, circularity, and
safe and sustainable chemicals be possible, while keeping our industrial base in
Europe.
> Our industry is an enabler of the transition to a climate-neutral and circular
> future, but we need support for technologies that will define that future.
In this context, the ETS must urgently evolve. With enabling conditions still
missing, like a market for low-carbon products, energy and carbon
infrastructures, access to cost-competitive low-carbon energy sources, ETS costs
risk incentivizing closures rather than investment in decarbonization. This may
reduce emissions inside the EU, but it does not decarbonize European consumption
because production shifts abroad. This is what is known as carbon leakage, and
this is not how EU climate policy intends to reach climate neutrality. The
system needs urgent repair to avoid serious consequences for Europe’s industrial
fabric and strategic autonomy, with no climate benefit. These shortcomings must
be addressed well before 2030, including a way to neutralize ETS costs while
industry works toward decarbonization.
Our industry is an enabler of the transition to a climate-neutral and circular
future, but we need support for technologies that will define that future.
Europe must ensure that chemical recycling, carbon capture and utilization, and
bio-based feedstocks are not only invented here, but also fully scaled here.
Complex permitting, fragmented rules and insufficient funding are slowing us
down while other regions race ahead. Decarbonization cannot be built on imported
technology — it must be built on a strong EU industrial presence.
Critically, we must stimulate markets for sustainable products that come with an
unavoidable ‘green premium’. If Europe wants low-carbon and circular materials,
then fiscal, financial and regulatory policy recipes must support their uptake —
with minimum recycled or bio-based content, new value chain mobilizing schemes
and the right dose of ‘European preference’. If we create these markets but fail
to ensure that European producers capture a fair share, we will simply create
new opportunities for imports rather than European jobs.
> If Europe wants a strong, innovative resilient chemical industry in 2030 and
> beyond, the decisions must be made today. The window is closing fast.
The Critical Chemicals Alliance offers a path forward. Its primary goal will be
to tackle key issues facing the chemical sector, such as risks of closures and
trade challenges, and to support modernization and investments in critical
productions. It will ultimately enable the chemical industry to remain resilient
in the face of geopolitical threats, reinforcing Europe’s strategic autonomy.
But let us be honest: time is no longer on our side.
Europe’s chemical industry is the foundation of countless supply chains — from
clean energy to semiconductors, from health to mobility. If we allow this
foundation to erode, every other strategic ambition becomes more fragile.
If you weren’t already alarmed — you should be.
This is a wake-up call.
Not for tomorrow, for now.
Energy support, enforceable rules, smart regulation, strategic trade policies
and demand-driven sustainability are not optional. They are the conditions for
survival. If Europe wants a strong, innovative resilient chemical industry in
2030 and beyond, the decisions must be made today. The window is closing fast.
--------------------------------------------------------------------------------
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* The ultimate controlling entity is CEFIC- The European Chemical Industry
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Brussels and Beijing got 99 problems — but an upcoming high-level summit ain’t
gonna solve a single one.
When EU leaders Ursula von der Leyen and António Costa travel to China in two
weeks, they will have several concerns in their travel bags — from market access
to China’s chokehold over strategic raw materials. America’s lurch into
protectionism under President Donald Trump is disturbing trade flows, meanwhile,
making it harder to resolve those thorny issues.
Von der Leyen reeled off a litany of political and economic complaints on
Tuesday — from China’s state-subsidized overproduction to price gouging,
“systematic” discrimination against foreign companies, export restrictions and
more — setting the tone for a contentious summit.
“China has an entirely different system,” she said in an address to European
lawmakers. The country has “unique instruments at its disposal to play outside
the rules,” allowing it “to flood global markets with subsidized overcapacity —
not just to boost its own industries, but to choke international competition.”
And the pain points are multiplying: The latest is a move by Beijing to restrict
government purchases of EU medical devices, in retaliation for a similar ban on
Chinese medical equipment imposed by Brussels last month. Those come on top of a
lingering dispute over the EU’s imposition of duties on Chinese-made electric
vehicles last year and retaliatory duties slapped by Beijing on European liquor.
Despite the milestone it’s supposed to celebrate — the 50th anniversary of
EU-China diplomatic ties — the summit is shaping up to be more symbolic than
substantive. With both sides entangled in trade spats, expectations are at a new
low. Officials are bracing for a summit that’s going to be more about saving
face than achieving concrete results.
While Brussels and Beijing usually alternate as summit hosts, Chinese President
Xi Jinping snubbed EU leaders earlier this year by declining an invitation to
come to Brussels.
The summit — originally planned to run for two days — will now only take place
on July 24 in Beijing. It’s still unlikely that Xi will attend the gathering,
which will be chaired by Premier Li Qiang, China’s second-ranked leader. Xi
might yet meet bilaterally with von der Leyen and Costa, but that is TBC.
“Not only doesn’t he [Xi] show up in Brussels, he doesn’t even attend in Beijing
… it’s so embarrassing, I would not take it over my dead body, I swear,” said
Alicia García-Herrero, chief economist for Asia-Pacific at French investment
bank Natixis and a senior fellow at Bruegel, a think tank.
“As a European I would say: Do not go, do not accept this shit.”
MOOD SHIFT
What’s more, the EU and the U.S. are scrambling to seal a provisional trade deal
ahead of Trump’s (newly postponed) deadline to reimpose sweeping tariffs on Aug.
1. Should that happen before the EU-China summit, it’s bound to spell further
trouble for the meeting.
“If the EU and the U.S. are going to seal a similar deal to [the deal the U.S.
sealed with the U.K.], other trading partners will be put at a disadvantage and
China will retaliate,” said a person from the Chinese business sector who was
granted anonymity to speak candidly.
In an attempt to find common ground with Trump, von der Leyen has hardened her
tone toward Beijing, accusing China at a G7 summit in Canada last month of
“weaponizing” its leading position in producing and refining critical raw
materials.
Unsurprisingly, those comments didn’t land well.
Guo Jiakun, spokesperson for China’s Ministry of Foreign Affairs, hit back at
von der Leyen’s remarks on raw materials. Beijing “fully considered the
reasonable needs and concerns of various countries, and reviewed export license
applications in accordance with laws and regulations,” Guo said.
Von der Leyen’s remarks were “quite hawkish and unsettling,” said the person
from the Chinese business sector quoted above.
“If [von der Leyen] was trying to charm Trump, she may have done so at the cost
of credibility — reminding China that the EU can talk cooperation with China one
day and posture like a Cold Warrior the next,” they added.
In short: The mood is sour — at a time when neither side, and especially the EU,
can afford it.
In a sign of its concerns over trade imbalances with China, Brussels launched a
tool in April to monitor the diversion of trade flows toward the bloc after
Trump imposed tariffs of up to 145 percent on Chinese goods (later lowered to 30
percent). While it’s too early to identify a clear trend, Chinese exports to
Europe are sharply up in sectors including chemicals, textiles and machinery.
HUGE UNCERTAINTY
When the summit was announced — days before Trump’s inauguration in January —
the EU struck an amicable tone, broadcasting its willingness to rekindle its
relationship with China amid uneasy transatlantic relations.
Nearly six months on, however, there has been scant progress toward resolving
bilateral disputes. And the Chinese commerce ministry has warned “any country”
against sealing trade deals with the U.S. that “undermine Chinese interests.”
“The situation is not good. The European Union has 70 percent of its exports to
the United States aimed at new tariffs. We are facing trade diversion because of
some of the actions being taken, and there’s a huge uncertainty in the trade
world,” Maria Martin-Prat De Abreu, a senior official at the Commission’s trade
department who is in charge of the EU’s China policy, told an event last month.
On top of rifts over electric vehicles, medical devices, spirits and pork, China
has imposed — as part of its retaliation against Washington — additional
controls on exports of rare earths. Those are inevitably hitting EU countries as
well.
Although EU trade chief Maroš Šefčovič has managed to negotiate faster
permitting procedures for European companies, industry continues to sound the
alarm over threats to supply chains for the manufacture of everything from
smartphones to car engines. China provides almost 99 percent of the EU’s supply
of the 17 rare earths.
In a reflection of the frosty relations between Brussels and Beijing, the two
sides don’t plan to issue a joint statement summing up their mutual commitments,
departing from the usual practice in international diplomacy.
The EU and China are instead looking at publishing a mere press release, two EU
officials said, just like they did in 2023.
“There’s a huge amount of work that needs to be done between now and the
summit,” said Martin-Prat De Abreu, adding that Brussels and Beijing were
focusing on both “general, structural issues” and more specific issues such as
market access for agricultural goods and cosmetics. “It is very difficult,” she
added.
What’s more, the usual high-level trade dialogue that typically precedes the
summit won’t be held due to the lack of progress on trade issues, according to a
person from the Chinese business sector and a European official. And Brussels is
refusing to sign a joint declaration on climate action unless China pledges
greater efforts to slash its greenhouse gas emissions, Climate Commissioner
Wopke Hoekstra told the Financial Times.
“It’s not that we shut the door,” a third EU official said. “It’s more that we
never opened it. We’re sending a signal to both China and the United States.”
This story has been updated.
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What do Marine Le Pen, Yanis Varoufakis and Donald Trump have in common? More
than you’d think.
In this episode of EU Confidential, host Sarah Wheaton breaks down the court
decision that could end Le Pen’s political career as well as the fallout for
France’s far right. With POLITICO’s Clea Caulcutt giving us the latest from
Paris, Yanis Varoufakis — the former Greek finance minister and leader of
left-wing party Mera25 — joins to discuss his controversial defense of Le Pen,
and why he believes Europe’s political future is on the line.
His stance got us thinking about the horseshoe theory of politics: Are the far
left and far right really that different?
PARIS — French President Emmanuel Macron wants EU businesses to stop investing
in America in response to U.S. President Donald Trump’s massive tariffs.
“It is important that future investments, the investments announced over the
last few weeks, should be put on hold for some time until we have clarified
things with the United States of America,” Macron said on Thursday as he hosted
a meeting with representatives of the sectors impacted and the government at the
Elysée palace.
“What message would we send by having major European players investing billions
of euros in the American economy at a time when [the U.S.] are hitting us?”
Macron continued, calling for “collective solidarity.”
Macron’s comments are seen as an attempt to dissuade French tycoons from cozying
up to Trump, potentially to try to cut private deals, outside regular EU trade
policy.
Earlier this month Trump announced that French shipping giant CMA CGM intended
to invest €20 billion in the U.S. In January, meanwhile, Bernard Arnault, the
head of luxury goods giant LVMH, said he was considering increasing investment
in the U.S. and lauded Trump’s economic policy.
On Wednesday the Trump administration slapped the EU with 20 percent tariffs on
all exports to the U.S. in what Macron called “a brutal and unfounded decision.”
The French president said Trump’s tariffs confirmed that France had been right
to push for a tougher trade policy and stronger trade defense instruments.
“We need to continue to accelerate at the European level with an agenda of trade
protection,” Macron said, citing EU duties on Chinese vehicles as an example of
how the EU can up the pressure on its economic rivals.
“We are not naïve, we are going to protect ourselves,” Macron said, referring to
the trade war with the U.S.
On top of retaliatory tariffs, Macron said, Brussels should consider using the
EU’s so-called anti-coercion instrument against the U.S. — a new tool in the
bloc’s trade arsenal that was conceived to hit countries like China — and also
take measures hitting American Big Tech.
“Nothing is ruled out, all tools are on the table,” Macron said.