9h00 ▪
5
min reading ▪ by
Luc Jose A.
The announcement of the return of Donald Trump's protectionism constitutes a notable change in transatlantic economic relations, as it threatens to reignite trade tensions between the United States and Europe. Faced with a policy that could once again shake up international trade, France is ready to vigorously defend its interests. At stake are the strategic sectors of industry and agriculture, as the European Union considers new measures to protect its economy. Thus, between French determination and European consultation, the debate around American protectionism continues to intensify, with major implications for economic players on both sides of the Atlantic.
A resolute French position against American protectionism
The French Minister of Foreign Affairs, Jean-Noël Barrot, did not mince his words regarding the possibility of new American taxes on European products. According to him, if Donald Trump makes his threats come true, France will respond “without trembling” to defend its national interests. Thus, “if the Trump administration were to persist in what I described as a major error, then we will defend our agricultural, industrial and commercial interests with an iron will,” he said. This position comes as Trump plans to impose tariffs of 10 to 20% on foreign products, a measure that could heavily target French and European exports to the United States.
France is particularly concerned about the impact of these taxes on its local economy, already under pressure. Indeed, for Jean-Noël Barrot, the surcharges envisaged by the Trump administration would constitute “a major miscalculation”, which could harm both French and American companies established in Europe. These taxes would directly affect the purchasing power of American households, because they will impact key French sectors such as agriculture and industry. Moreover, “this would immediately deprive the American middle classes of a whole part of their purchasing power,” underlined the minister, who insists on the profound repercussions of such a protectionist policy.
Towards a united European strategy in the face of commercial challenges
Beyond the French response, all of Europe is considering preparing for a coordinated response. Marc Ferracci, Minister Delegate for Industry, called for a strong European reaction. He declared that Europe needed to establish “a commercial and economic balance of power” against the Trump administration. According to him, European unity is essential to avoid repeating the mistakes of the past, when American protectionist policies hit Europe without an appropriate response. “We must prepare for it as Europeans,” he insisted. He urges member countries to display a position as a united bloc to have influence in the negotiations.
This collective awareness could lead to concrete actions, such as the implementation of the carbon tax at borders, a lever already under discussion within the Union to balance trade. Such a new orientation shows the evolution of a Europe determined to defend its strategic industries. Nevertheless, some leaders, particularly in Germany, remain committed to transatlantic cooperation. Chancellor Olaf Scholz, although worried, recalled the importance of ties between the United States and Europe, and underlines cooperation in defense and security. However, the question therefore remains unanswered: how far is Europe prepared to go to counter Trump's future policies?
Ultimately, if France and the European Union seem determined to defend their interests, they also remain aware of the risks of a prolonged confrontation with their American partner. Faced with resurgent protectionism, Europe may well have to redefine its strategic approach to its trade, and seek a balance between firmness and diplomacy to preserve its long-term economic interests.
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Luc Jose A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
