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France And Europe On Alert Over Trump’s Protectionist Threats

Wed 13 Nov 2024 ▪ 5 min read ▪ by Luc Jose A.
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The announcement of Donald Trump’s return to protectionism marks a significant change in transatlantic economic relations, as it threatens to rekindle trade tensions between the United States and Europe. In the face of a policy that could once again shake international trade, France appears ready to vigorously defend its interests. At stake are the strategic sectors of industry and agriculture, while the European Union is considering new measures to protect its economy. Thus, between French determination and European consultation, the debate surrounding American protectionism continues to intensify, with major implications for the economic actors on both sides of the Atlantic.

Le bras de fer économique entre la France et les États-Unis.

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 follows through on his threats, France will respond “without trembling” to defend its national interests. Thus, “if the Trump administration were to persist in what I have called a major error, then we will defend our agricultural, industrial, and commercial interests with an iron will,” he declared. This stance 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 considered by the Trump administration would be “a major miscalculation,” which could harm both French companies and American firms established in Europe. These taxes would directly affect the purchasing power of American households, as they will impact key French sectors such as agriculture and industry. Furthermore, “this would immediately amputate the American middle classes of a whole part of their purchasing power,” emphasized the minister, who highlights the profound repercussions of such a protectionist policy.

Towards a united European strategy in the face of trade challenges

Beyond the French response, all of Europe is considering preparing for a coordinated response. Marc Ferracci, the appointed Minister responsible for Industry, has called for a strong European reaction. He states that Europe must establish “a commercial and economic balance of power” in the face of the Trump administration. According to him, European unity is crucial to avoid repeating past mistakes when American protectionist policies struck Europe without an appropriate response. “We must prepare for this as Europeans,” he asserted. He urges member countries to present a united bloc position to have influence in negotiations.

This collective awareness could lead to concrete actions, such as implementing a carbon tax at the borders, a lever already being discussed 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 concerned, has reminded us of the importance of the ties between the United States and Europe and emphasizes cooperation in defense and security matters. However, the question remains: how far is Europe willing to go to counter Trump’s future policies?

Ultimately, while France and the European Union seem determined to defend their interests, they are also aware of the risks of a prolonged confrontation with their American partner. In the face of a resurgent protectionism, Europe may very well need to redefine its strategic approach to its trade relations and seek a balance between firmness and diplomacy to preserve its long-term economic interests.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

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