French President Emmanuel Macron warned that the European Union may be forced to take “strong measures” against China, including potential tariffs, if Beijing fails to address its widening trade 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 said, adding that he had discussed the matter with European Commission President Ursula von der Leyen.
Tensions between France and China escalated last year after Paris backed the EU’s decision to impose tariffs on Chinese electric vehicles. Beijing retaliated by imposing minimum price requirements on French cognac, sparking fears among pork and dairy producers that they could be targeted next.
Macron said the US approach to China was “inappropriate” and had worsened Europe’s position by diverting Chinese goods toward the EU market.
“Today, we’re stuck between the two, and it’s a question of life or death for European industry,” Macron said, while noting that Germany — Europe’s biggest economy — doesn’t entirely share France’s stance.
In addition to Europe needing to become more competitive, the European Central Bank too has a role to play in strengthening the EU’s single market, Macron said, arguing that monetary policy should take growth and jobs into account, not just inflation, he said.
He also said the ECB’s decision to continue selling the government bonds it holds risks pushing up long-term interest rates and weighing on economic activity.
“Europe must — and wants to — remain a zone of monetary stability and credible investment,” Macron said.
