EU Prepares Retaliatory Tariffs in Response to US Trade Measures
The European Union is bracing itself for potential trade conflict with the United States, with President Emmanuel Macron announcing the bloc’s intention to implement "reciprocal tariffs" on steel and aluminum. This move comes in direct response to the looming imposition of tariffs by the US on European goods, a measure that has raised significant concerns within the EU.
Macron, speaking at a joint press conference in Porto alongside Portuguese Prime Minister Luis Montenegro, emphasized the need for the EU to protect its interests and defend itself against what he perceives as unfair trade practices. "We must protect ourselves, we must defend ourselves," he stated, adding, "We cannot afford to be weak in the face of these measures."
The potential US tariffs, initially targeting steel and aluminum regardless of their origin, have expanded to include a broader range of European products. The US administration has indicated plans to impose a 25% tariff on all EU goods, a move that could have a significant impact on transatlantic trade relations.
Macron made it clear that the EU would not stand idly by if these tariffs were implemented. "And if, as announced, tariffs are imposed on European products at this level at the beginning of April, the Europeans will have to respond," he asserted.
Prime Minister Montenegro echoed Macron’s sentiment, emphasizing the importance of a proportionate response. "Of course, Europe will have to react to the application of tariffs, of the same amount or similar," Montenegro stated, adding that "it would make no sense not to do the same thing, to reciprocate."
The potential for a trade war between the EU and the US has raised concerns among businesses and policymakers on both sides of the Atlantic. Such a conflict could disrupt supply chains, increase costs for consumers, and potentially lead to a slowdown in economic growth.
While the EU is preparing to defend its interests, it remains hopeful that a negotiated solution can be reached with the US. The EU has consistently advocated for a rules-based international trading system and has expressed its willingness to engage in dialogue with the US to address trade imbalances and resolve disputes.
However, the EU also recognizes the need to be prepared for all eventualities. The implementation of reciprocal tariffs is seen as a necessary measure to deter the US from imposing unfair trade practices and to protect European industries from the negative consequences of such measures.
The situation remains fluid, and the EU is closely monitoring developments in Washington. The EU is committed to defending its interests and preserving the integrity of the international trading system. It is hoped that the US will reconsider its approach and engage in constructive dialogue to find a mutually acceptable solution.
Beyond the immediate trade dispute with the US, President Macron also addressed other pressing issues during the press conference. When questioned about the possibility of a referendum on pension reforms, as suggested by François Bayrou in an interview with Le Figaro, Macron emphasized the importance of proceeding in a deliberate and orderly manner.
He stated that "we must do things in the right order," adding that "the moment is the moment of dialogue between the social partners and we must give them the maximum chance of success and allow them to do so in a calm and demanding framework."
Macron also raised concerns about the detention of Franco-Algerian writer Boualem Sansal in Algeria, describing it as an "arbitrary detention." He expressed concern about Sansal’s health and stated that his situation was "one of the elements that must be resolved [with Algeria] in order for trust to be fully restored" between the two countries.
Turning to the broader relationship between France and Algeria, Macron called on Algeria to "re-engage in work" with France on immigration agreements. He cautioned against "political games" in the debate, which he acknowledged was straining the bilateral relationship.
"We will not move forward if there is no work, we cannot talk to each other through the press, it’s ridiculous, it never works that way," Macron stated. His comments highlight the complex and often sensitive nature of the relationship between France and Algeria, particularly in the context of immigration.
