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French trade minister warns EU not to be "naive" after US imposes tariffs on neighbours and China

By RFI
China AP - Virginia Mayo
SUN, 02 FEB 2025
AP - Virginia Mayo

In the wake of US President Donald Trump's announcement to impose tariffs on Canada, Mexico and China, European officials prepare themselves for possible US levies on European products.

Europe must "assume a form of power dynamic" in the face of Donald Trump's tariff threats, French Industry Minister Marc Ferracci said on Sunday, calling for a "biting" response to the American president.

"Trade negotiations with Donald Trump must assume a form of power dynamic," Ferracci told France Info on Sunday, following the United States' imposition of 25 percent tariffs on products from Canada and Mexico, and an additional 10 percent on existing tariffs on Chinese products.

As the American president has threatened to also sanction the European Union, "it is obvious that we must react," Ferracci stated, while adding that "we are waiting for the American administration's decisions on what will concern Europe".

According to him, "to be effective, the response must focus on products that are important to your interlocutor and the country with which you are negotiating."

He emphasized that "it must be 'biting,' meaning it should have an impact on the American economy to have a credible threat in negotiations."

"Abandon naivety"

"We won't let ourselves be pushed around," added Laurent Saint-Martin, the Minister Delegate for Foreign Trade, when questioned on CNews about the commercial threats from the new US president.

"If the first impression you give of Europe to the US, China, and the entire world is to 'go ahead, we are just a consumer market and after all, we will no longer produce here,' you have lost the battle," he continued.

"We must abandon naivety," Ferracci further stated, while calling to "better protect our industry" by implementing a "Buy European Act" to favor products made in Europe."

Our challenge is to remain united, and to capitalize on the strength that this union gives us, that is, a common market that the United States cannot do without," Ferracci added.

"We must not start by making concessions, we must not start by saying that we will buy more American products in this or that industrial or agricultural sector," he insisted.

At this moment, the 27 EU members are still divided between a "defensive" approach - buying American products like liquefied natural gas (LNG) or weapons to try to avoid a trade conflict with Trump - or a more "offensive" one with possible retaliatory measures.

(With Newswires)

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