EU prepares for trade war as France, Germany slam Trump's tariffs

France has expressed its readiness for a trade war with the United States in response to President Donald Trump's newly announced tariffs, signaling plans to retaliate, particularly by targeting US online services.

French government spokeswoman Sophie Primas emphasized that the European Union is prepared to respond aggressively to the tariffs, which she described as having a significant impact on industries like wine and spirits, Caliber.Az reports citing foreign media.

“We are pretty sure that we are indeed going to see an adverse effect on production,” Primas said.

“We have a whole range of tools and we are ready for this trade war. Then we will look at how we can support our production industries,” she added, highlighting France’s determination to mitigate the impact of the tariffs.

Primas also criticized Trump's approach, calling it "an imperialist stance that we had somewhat forgotten about but which is returning with great force and great determination." She went on to suggest that the US president "thinks he is the master of the world."

In response to the tariffs, which were unveiled by Trump on what he called "Liberation Day", the EU is planning a two-phase retaliation. The first phase, focusing on aluminium and steel, is expected to be implemented around mid-April. Following this, the EU will target "all products and services," with new measures likely to be ready by the end of the month.

Notably, Primas indicated that online services, which are not currently taxed, could be included in the EU’s response. “But we are also going to attack services. For example, online services, which are not taxed today but could be,” she explained. Additionally, the EU is considering restrictions on access to procurement contracts.

The French wine and spirits sector, one of the most heavily impacted, expressed grave concern over the new tariffs. The French association representing wine and spirits exporters (FEVS) estimated that US tariffs could lead to a loss of around 800 million euros ($877 million) in exports of French wines and spirits. The broader EU impact could reach up to 1.6 billion euros. “Such a decline will have a huge impact on employment and the sector's economy,” FEVS stated. 

Meanwhile, German Economy Minister Robert Habeck stated that US President Donald Trump may “buckle under pressure” and change his tariff policies if Europe unites.

Speaking at a press conference, Habeck stated, “That is what I see, that Donald Trump will buckle under pressure, that he corrects his announcements under pressure, but the logical consequence is that he then also needs to feel the pressure.”

He emphasized that this pressure should come from Germany, Europe, and an alliance with other nations. "And this pressure now needs to be unfolded, from Germany, from Europe in the alliance with other countries, and then we will see who is the stronger one in this arm wrestle,” Habeck added.

Habeck warned that appeasing Trump or allowing him to persist with tariffs would not work. “Allowing Trump to persist or trying to appease him would not be a successful strategy under any circumstances,” he said. He called for a “day of determination,” while stressing the importance of avoiding a trade war.

Outgoing German Chancellor Olaf Scholz also criticized Trump’s latest tariffs, calling them “fundamentally wrong.” He said, “The measures are an attack on the global trade order,” warning they would result in suffering for the global economy.

On April 2, Trump imposed 20 per cent levies on the European Union, including on the bloc’s foremost economy Germany, as he signed a sweeping and aggressive “reciprocal tariff” policy.

Germany is widely regarded as one of the countries likely to be most impacted by Trump’s tariffs, given its heavy economic reliance on trade.

By Vafa Guliyeva