French President Emmanuel Macron warned that the European Union could also be pressured to take “strong measures” towards China, together with potential tariffs, if Beijing fails to deal with its widening commerce imbalance with the bloc.
“If they don’t react, in the coming months we Europeans will be obliged to take strong measures and decouple, like the US, like for example tariffs on Chinese products,” he mentioned, including that he had mentioned the matter with European Fee President Ursula von der Leyen.
Macron has simply returned from a three-day state go to in China, the place he pressed for extra funding as Paris seeks to recalibrate its relationship with the world’s second-largest economic system. France’s items commerce deficit with China reached round €47 billion ($54.7 billion) final 12 months, in keeping with the French Treasury. In the meantime, China’s items commerce surplus with the EU swelled to nearly $143 billion within the first half of 2025, a document for any six-month interval, in keeping with knowledge launched by China earlier this 12 months.
Tensions between France and China escalated final 12 months after Paris backed the EU’s choice to impose tariffs on Chinese language electrical automobiles. Beijing retaliated by imposing minimal value necessities on French cognac, sparking fears amongst pork and dairy producers that they might be focused subsequent.
‘Life or Death’
Macron mentioned the US method to China was “inappropriate” and had worsened Europe’s place by diverting Chinese language items towards the EU market.
“Today, we’re stuck between the two, and it’s a question of life or death for European industry,” Macron mentioned, whereas noting that Germany — Europe’s largest economic system — doesn’t solely share France’s stance.
Along with Europe needing to turn into extra aggressive, the European Central Financial institution too has a job to play in strengthening the EU’s single market, Macron mentioned, arguing that financial coverage ought to take development and jobs under consideration, not simply inflation, he mentioned.
He additionally mentioned the ECB’s choice to proceed promoting the federal government bonds it holds dangers pushing up long-term rates of interest and weighing on financial exercise.
“Europe must — and wants to — remain a zone of monetary stability and credible investment,” Macron mentioned.
