Macron slams US trade policy, urges Europe to protect its market

On January 20, French President Emmanuel Macron criticised the United States’ trade approach, accusing Washington of seeking “maximum concessions” while deliberately attempting to weaken and subordinate Europe.

Speaking at the World Economic Forum in Davos, Macron stressed that Europe must adopt a more realistic stance towards its own market, Caliber.Az reports, citing French media.

He emphasised that “protection does not mean protectionism,” calling for stronger “European preference” and the acceleration of efforts to deepen the EU’s single market.

Macron underlined that Europe prefers “respect over brute force,” while noting that the bloc possesses powerful trade instruments to defend its interests when necessary.

Trump’s threat to impose punitive tariffs on eight European countries has raised concerns of a transatlantic trade confrontation. Over the weekend, Trump warned that Denmark, Norway, Sweden, the UK, France, Germany, the Netherlands, and Finland would face a 10% tariff on all goods exported to the US from 1 February unless Greenland is sold to the US. The rate could rise to 25% from 1 June if no agreement is reached.

In response, the European Union has highlighted its anti-coercion instrument (ACI), dubbed the “big bazooka,” designed to counter political and economic bullying. The ACI, which came into force in 2023, allows the EU to impose trade sanctions, restrict market access, or suspend intellectual property protections proportionate to the harm inflicted.

France has been a strong proponent of deploying the measure, while Germany favours a more conciliatory approach, and other member states emphasise dialogue. A full ACI response would take months to implement, but quicker retaliation could see previously planned tariffs on €93bn of US goods, including bourbon and aircraft, reinstated after 6 February.

The economic stakes are high. The US imports over $365bn of goods from the targeted countries, with Germany, the UK, and France most exposed. Goldman Sachs estimates that a 10% tariff could reduce affected European GDP by 0.1–0.2%, with Germany potentially losing 0.3%. The US would also face consequences, as tariffs would increase costs for businesses and consumers, potentially slowing investment and inflation. The IMF warns that a tit-for-tat trade war could reduce global output by roughly 0.3%.

Experts hope the US Supreme Court may block Trump’s tariffs or that market and diplomatic pressures could force a retreat, repeating past “Taco moments” where the president reversed his threats. Nevertheless, the situation underscores the fragility of transatlantic trade relations and the potential risks of escalating economic conflicts.

By Aghakazim Guliyev