Macron Urges EU to Confront Trump Tariff Threat

French President Emmanuel Macron has rallied the European Union to prepare robust countermeasures against proposed 30% U.S. tariffs on EU imports, risking disruption in transatlantic trade. With a temporary pause on €21 billion worth of retaliatory tariffs, he emphasizes the need for contingency planning centered on anti-coercion mechanisms within EU trade policy.

The move reflects concern that unilateral U.S. tariff actions could set a precedent for trade diplomacy, threatening sensitive sectors like autos and steel. As Germany’s Friedrich Merz and other EU leaders seek diplomatic resolution, Macron’s message underscores tension between de-escalation and readiness for economic retaliation. For EU firms and exporters, sustained uncertainty may depress investment decisions, disrupting supply chains already geared toward Asia.

Downside risk extends to global inflation, as increased costs filter through to consumer prices, likely affecting central bank strategy. The situation will also test the EU’s ability to present a united front—determining whether it can renegotiate terms with Washington or must accelerate free trade agreements in other regions, such as recent pacts with Indonesia.