Amidst growing global trade tensions, French President Emmanuel Macron has issued a stern warning to China regarding the EU’s swelling trade deficit, threatening potential tariffs on Chinese goods. The move, revealed Sunday in an interview with Le Zéco, mirrors protectionist strategies previously employed by the United States and underscores a wider effort to recalibrate international economic relationships. Macron’s comments come after a recent visit to Beijing yielded limited progress on trade imbalances, with just 12 cooperation agreements reached-lacking specifics on financial value-and highlight the increasing pressure on European industries caught between competing geopolitical forces.
French President Emmanuel Macron warned China that the European Union could impose tariffs on Chinese products if Beijing doesn’t address the growing trade imbalance with the bloc, a move echoing similar tactics employed by former U.S. President Donald Trump. The escalating trade tensions reflect a broader global effort to rebalance economic relationships and protect domestic industries.
Macron revealed in an interview published Sunday by the French newspaper Le Zéco that he cautioned Chinese officials about the unsustainability of their trade surplus. “I tried to explain to the Chinese that their trade surplus is not sustainable, because they are losing customers, especially by not importing much from us,” he said.
He added, “I told them that if they don’t address this, we Europeans will be forced in the coming months to take strong measures, like the United States, such as imposing tariffs on Chinese products.”
During his visit earlier this month, Macron urged China to strengthen cooperation on what he described as “unsustainable” global trade imbalances, as well as geopolitical and environmental issues.
The French President also expressed concern about the challenges facing European industry, caught between protectionist measures from the U.S. and China’s impact on Europe’s industrial and innovative model. He called on Chinese companies to invest in Europe and “create value and opportunities for Europe.”
The EU’s trade deficit with China has increased by nearly 60% since 2019, and France’s trade balance with the $19 trillion Chinese economy continues to widen.
A “Matter of Life and Death”
Macron characterized the U.S. approach to China as “inappropriate” and contributing to the situation in Europe by diverting Chinese goods to the European market, according to Bloomberg.
“Today we are stuck between the two, and this is a matter of life or death for European industry,” Macron stated, noting that Germany, Europe’s largest economy, doesn’t fully share France’s position.
Tensions between France and China escalated last year after Paris supported the EU’s decision to impose tariffs on Chinese electric vehicles. Beijing responded with tariffs on some French products, raising concerns among pork and dairy producers that they could be next.
However, a meeting last week in Beijing between Macron and Chinese President Xi Jinping resulted in only 12 cooperation agreements in areas such as aging populations, nuclear energy, and panda conservation, with no announcement of the total value of these agreements.
Beijing may view friendly relations with France as a way to expand its influence within the 27-member European Union, but its ability to make significant concessions to Paris is limited, according to Reuters.
Macron emphasized the need for Europe to become more competitive, adding that the European Central Bank also has a role in strengthening the single market. He called for monetary policy to consider growth and job creation, not just inflation.
