The French president, Emmanuel Macron, has called on the EU to “defend European interests resolutely” after Donald Trump threatened to impose 30% tariffs on nearly all imports from the EU.

He said the EU should be ready for a trade war and to stand up to the US president who was only last week expected to approve a 10% tariff agreement in principle with the bloc.

“It is more than ever up to the commission to assert the union’s determination to defend European interests resolutely,” Macron said on social media. “In particular, this implies accelerating the preparation of credible countermeasures, by mobilising all the instruments at its disposal, including anti-coercion, if no agreement is reached by 1 August.”

Other European leaders called for calm, including in Italy, the Netherlands, Germany and Ireland. But reflecting the shock around the bloc over Trump’s threat, the influential Federation of German Industries (BDI) said Trump’s announcement was “a wake-up call for the industry on both sides of the Atlantic”.

Macron’s call for trade war readiness came in contrast to Berlin, which urged a “pragmatic” response. “The EU now must, in the time that remains, negotiate in a pragmatic manner a solution with the United States,” Germany’s economy minister, Katherina Reiche, said in a statement. “A pragmatic outcome to these negotiations must be reached quickly.”

Giorgia Meloni, the prime minister of Italy, who enjoys good relations with Trump, said in a statement she trusted “a fair agreement” could be reached. “It would make no sense to trigger a trade war between the two sides of the Atlantic,” she said.

The Dutch prime minister, Dick Schoof, said on social media the EU “must remain united and resolute” in its aim to reach a “mutually beneficial” deal with the US.

Ireland’s deputy prime minister, Simon Harris, said: there was “no necessity to escalate the situation”. Trump has previously accused Dublin of stealing US business by luring in tech and pharma companies.

Ambassadors are to meet in Brussels on Sunday to discuss tactics before a scheduled summit of trade ministers on Monday, where divisions in approach may be underlined.

The threat of a 30% tariff is being seen as a negotiating tactic, but behind the scenes there is fury with many viewing it as a dangerous transatlantic game at a time of grave global instability.

Trump’s latest salvo is in line with his April “liberation day” claim that the EU was charging unfair duties of 39% on US imports, an analysis widely discredited, with EU officials pointing to an average of about 2.5%.

View image in fullscreen Trump’s ‘liberation day’ tariff chart. Photograph: Alex Wong/Getty Images

Some MEPs have warned that if they start accepting “illegal” tariffs as the new norm, Trump will just come back for more. “It is matter of showing the EU is not a victim, is not paralysed in itself or scared,” the Italian MEP Brando Benifei, a member of the international trade committee, said last week.

Germany’s Association of the Automotive Industry warned about the prospect of rising costs for carmakers and suppliers and said it was “regrettable that there is a threat of a further escalation of the trade conflict”.

Germany’s car industry is already reeling from the 25% hike in tariffs on exports to the US on top of the pre-existing 2.5%, while its steel industry is having to cope with punitive tariffs of 50%.

It is understood the agreement in principle that was on Trump’s table offered potential tariff relief for any European car manufacturers with plants in the US, which included Mercedes-Benz, BMW and Volkswagen along with the Swedish brand Volvo.

Last week the Swedish finance minister called the agreement “really bad” while at the same time saying that some economic pain was inevitable.

EU-US trade is worth €1.4tn a year but just three countries – Germany, Italy and Ireland, with its large multinational pharma sector – export more to the US than they import.

Emanuele Orsini, the president of Confindustria, the confederation of Italian industry, said the EU must not escalate. “Now we all need to keep calm and hold our nerve,” he said.

But in the north of the country, the Confindustria Veneto president, Raffaele Boscaini, said there would have to be supports for industries in the event of higher tariffs. “The EU and the Italian government will have to intervene with concrete measures to support the competitiveness of our companies: investment and access to credit, bureaucratic and fiscal relief as well as the definition of energy policy,” said Boscaini, who is head of marketing at Masi, the leading producer of Amarone wine, which would be hit hard by a 30% tariff.

France’s military ties with Australia have recovered after their 2021 bust-up over a major submarine deal, the country’s ambassador said Sunday.

Paris expressed its “strong regrets” when Australia tore up a multibillion-dollar deal to buy a fleet of diesel-powered submarines from France, Ambassador Pierre-Andre Imbert said.

Since the 2022 election of Prime Minister Anthony Albanese, however, the defence relationship had been “restarted”, he said.

“Now, the first pillar of our cooperation is defence and security, so we have a very good level of cooperation,” the ambassador told AFP as French forces joined major military drills around Australia.

When Australia ditched the French deal, it opted instead to acquire nuclear-powered vessels in a new three-way AUKUS pact with the United States and Britain.

But a US defence official last month revealed that a review of AUKUS was underway to ensure it “aligned with the President’s America First agenda” and that the US defence industrial base was “meeting our needs”.

Under the AUKUS deal, Australia would acquire at least three Virginia-class submarines from the United States within 15 years, eventually manufacturing its own subs.

The US Navy has 24 Virginia-class vessels, but American shipyards are struggling to meet production targets set at two new boats each year.

Asked if France would ever consider discussing a new submarine deal with Australia if the AUKUS agreement was torpedoed by the review, the French ambassador said he was reluctant to speculate.

“I would say it’s more an issue for Australia for the moment. And of course, we are always discussing with our friends of Australia,” he said.

“But for the moment, they have chosen AUKUS,” he said. “If this changes (and) they ask, we’ll see.”

More than 30,000 military personnel from 19 nations are set to join the three-week annual Talisman Sabre military exercises, which started Sunday across Australia and Papua New Guinea.

Macron Calls On EU To ‘Defend European Interests’

Meanwhile, French President Emmanuel Macron recently condemned US President Donald Trump’s threat to impose 30 percent tariffs on the European Union, calling on the bloc to “resolutely defend European interests”.

US President Donald Trump had warned that Mexico and the EU would be slapped with 30 percent tariffs starting on August 1, raising the stakes in already tense negotiations with two of the largest US trading partners.

Expressing France’s “very strong disapproval” of the announcement, Macron called on the bloc to “step up the preparation of credible countermeasures by mobilising all instruments at its disposal” if the two sides failed to reach agreement by August 1.

“France fully supports the European Commission in the negotiation that will intensify to reach a mutually acceptable agreement by August 1, so that it reflects the respect that trade partners such as the European Union and the United States owe each other,” he wrote on social media.

Earlier Saturday, European Commission chief Ursula von der Leyen hit out at the new tariffs threatened by Trump, but said the EU still sought a deal to avert the measures.

Mexico Unhappy

Mexico slammed US President Donald Trump’s latest threat of 30 percent tariffs Saturday as an “unfair deal,” according to a government statement.

Mexico was informed of the new duties — which Trump said would come into effect by August 1 — during talks in the United States on Friday.

“We mentioned at the table that it was an unfair deal and that we did not agree,” the Mexican economy and foreign ministries said in a joint statement.

Mexico is already in negotiations seeking an alternative to tariffs that would protect businesses and jobs on both sides of the border, the ministries added, saying they hope to avoid the duties.

President Claudia Sheinbaum, whom Trump often refers to favorably, expressed confidence Saturday that a deal would be reached.

“We are going to reach an agreement with the US government,” Sheinbaum said during a public event hours after Trump’s social media post announcing the elevated tariffs.

She said the talks in Washington would allow Mexico to be in a “better position” by August 1.

Mexico is one of the countries most vulnerable to the US leader’s tariffs, with 80 percent of its exports destined for its northern neighbor, which is also its largest trading partner.

Since returning to the White House in January, Trump has reproached Mexico for not doing what he says is enough to prevent illegal migration and drug trafficking across the border, and has wielded tariffs as retaliation.

Via: AFP

The European Union (EU) said on Saturday it was ready to retaliate to defend its interests if the United States pressed ahead with imposing a 30% tariff on European goods from Aug. 1.

US President Donald J. Trump latest salvo surprised the bloc, the United States’ largest trading partner, which had hoped to avoid an escalating trade war after intense negotiations and increasingly warm words from the White House.

Ursula von der Leyen, head of the EU executive which handles trade policy for the 27 member states, said the bloc was ready to keep working towards an agreement before Aug. 1,but was willing to stand firm.

“We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,” she said of possible retaliatory tariffs on US goods entering Europe.

EU ambassadors will discuss next steps on Sunday, before trade ministers meet in Brussels on Monday for an extraordinary meeting. They will need to decide whether to impose tariffs on €21 billion of US imports in retaliation against separate US tariffs against steel and aluminum, or extend a suspension which lasts until the end of Monday.

The EU has so far held back from retaliating against the US, although it has readied two packages that could hit a combined €93 billion of US goods.

European capitals swiftly backed Ms. Von der Leyen’s position.

German Economy Minister Katherina Reiche called for a “pragmatic outcome to the negotiations.”

Mr. Trump’s proposed tariffs would hit European exporting companies hard. At the same time, they would also have a strong impact on the economy and consumers on the other side of the Atlantic,” she said.

French President Emmanuel Macron said on X that the European Commission needed more than ever to “assert the Union’s determination to defend European interests resolutely.”

Retaliation might need to include so-called anti-coercion instruments if Mr. Trump did not back down, Mr. Macron said.

The tool, drawn up during Mr. Trump’s first term and used against China, allows the EU to go beyond traditional tariffs on goods and impose restrictions on trade in services, if it deems that a country is using tariffs to force a change in policy.

Spain’s Economy Ministry backed further negotiations but added that Spain and others in the EU were ready to take “proportionate countermeasures if necessary.”

Mr. Trump has periodically railed against the EU, saying in February it was “formed to screw the United States.”

His biggest grievance is the US merchandise trade deficit with the EU, which in 2024 amounted to $235 billion, according to US Census Bureau data. The EU has repeatedly pointed to a US surplus in services, arguing it in part redresses the balance.

RETALIATION

Combining goods, services and investment, the EU and the United States are each other’s largest trading partners by far. The American Chamber of Commerce to the EU said in March the trade dispute could jeopardize $9.5 trillion of business in the world’s most important commercial relationship.

Bernd Lange, head of the European Parliament’s trade committee said he was now convinced the first stage of countermeasures should come into force on Monday, followed quickly by the second package.

Mr. Trump has said he would mirror any retaliatory moves.

Still, Mr. Trump has repeatedly announced sweeping tariffs in recent months, only to row back or suspend them before his own self-imposed deadlines. The expectation that he will again relent has led to increasingly muted responses on financial markets, which have recovered since plunging after his initial “Liberation Day” announcement of big global tariffs in April.

Three EU officials who spoke on condition on anonymity said they saw Mr. Trump’s latest threats as a negotiating ploy.

Carsten Brzeski, global head of macro at ING, said Mr. Trump’s move suggested that months of negotiations remained deadlocked and that the situation was inching towards a make-or-break moment for the transatlantic trade relationship.

“The EU will now have to decide whether to budge or to play hardball,” he said. “This will bring market volatility and even more uncertainty.”

Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, noted that the brunt of the US tariffs, if implemented, would be felt by US consumers.

However, there would also be clear repercussions for the euro area economy, already struggling with weak growth.

The European Central Bank had used a 10% tariff on EU exports to the United States as the baseline in its latest economic projections, which put output growth in the euro area at 0.9% this year, 1.1% in 2026 and 1.3% in 2027.

It said a 20% US tariff would curb growth by 1 percentage point over the same period and also pull down inflation to 1.8% in 2027, from 2.0% in the baseline scenario. It did not even offer an estimate for the possibility of a 30% tariff. — Reuters

AFP | Paris

Email : editor@newsofbahrain.com

French President Emmanuel Macron yesterday condemned US President Donald Trump’s threat to impose 30-percent tariffs on the European Union, calling on the bloc to “resolutely defend European interests”.

US President Donald Trump yesterday warned that Mexico and the EU would be slapped with 30-percent tariffs starting on August 1, raising the stakes in already tense negotiations with two of the largest US trading partners.

Expressing France’s “very strong disapproval” of the announcement, Macron called on the bloc to “step up the preparation of credible countermeasures by mobilising all instruments at its disposal” if the two sides failed to reach agreement by August 1.

United States President Donald Trump has threatened to impose a 30% tariff on imports from Mexico and the European Union starting August 1. The announcement was made through letters sent to European Commission President Ursula von der Leyen and Mexico’s President, Claudia Sheinbaum, which were posted on his Truth Social media site. Both the EU and Mexico have called the tariffs unfair and disruptive, but pledged to continue negotiating for a broader trade deal before the deadline.

European response ‘Tariff threat is an attack on Europe…’: Macron French President Emmanuel Macron condemned the tariff threat, urging the EU to “resolutely defend European interests.” He called for credible countermeasures if no agreement is reached by August 1. Spanish Prime Minister Pedro Sanchez also slammed the tariffs as unjustified, saying they destroy economic prosperity. German Economy Minister Katherina Reiche called for pragmatism in negotiations with the US.

EU stance EU will take all necessary steps to protect its interests European Commission President Ursula von der Leyen said the EU will take all necessary steps to protect its interests, including proportionate countermeasures if needed. She said, “The EU has consistently prioritised a negotiated solution with the US, reflecting our commitment to dialogue, stability, and a constructive transatlantic partnership.” “At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,” she added.