By John Q. Hosedrinker 
Following President Trump’s threat to impose significant tariffs on EU imports, French President Emmanuel Macron urged the EU to prepare for a trade war and defend its interests. While other European leaders like those in Italy, the Netherlands, Germany, and Ireland called for a measured response, the influential Federation of German Industries saw Trump’s announcement as a warning. EU ambassadors are scheduled to meet to discuss tactics, with potential divisions in approach expected at an upcoming trade ministers’ summit. This comes after Trump’s previous claims of unfair EU duties on US imports, despite evidence to the contrary, raising concerns among MEPs about the long-term implications of such tariffs.
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Macron, in a strong move, is calling on the EU to “defend European interests resolutely” against potential tariffs from the US. It’s a clear signal that Europe isn’t going to stand idly by, especially given the unpredictable nature of the US’s trade policies and the history of abrupt shifts. The situation demands a unified front, and Macron seems determined to lead the charge.
The sentiment here is that the US has become an untrustworthy trade partner. The constant flip-flopping, the sense of deals being made one day and broken the next, is creating an environment of uncertainty. This unpredictability makes it difficult for businesses and governments to plan, invest, and build lasting relationships. It’s no longer just a matter of trade disputes; it’s about a loss of faith in the US’s commitment to fair and consistent global trade practices.
The EU has a variety of tools at its disposal, including “anti-coercion” measures, to defend its interests. One particular suggestion is to target specific US exports to the EU, such as digital advertising, which are easily taxed without significantly impacting European consumers. This would hit the US where it hurts – its bottom line – and could swiftly end the trade war. The thinking goes that because of the way digital ad bidding systems work, the network would eat the cost, preserving the export volumes, making it the ideal target.
Some are already calling for a more aggressive stance, possibly even a “nuclear” approach with a digital services tax. There’s a feeling that European leaders should have nothing to do with the previous administration. The calls are clear: the EU needs to stand firm and not be pushed around by the US. Some express the desire to avoid a weak response, such as a 15% tariff on whiskey and Harley Davidsons. This is clearly not the direction to take to defend European interests.
There’s also an idea floating around about fostering European self-sufficiency. If the US is unreliable, perhaps it’s time to develop EU capabilities in areas where the US currently dominates. A next-generation fighter jet project, the “Future Combat Air System” (FCAS), is one example of this thought process in action. The idea is that by pooling resources and prioritizing the EU over national interests, the bloc can build its own strength and become less reliant on external powers.
France, as a key player, has been criticized for putting its national interests ahead of the EU’s. However, in this context, it seems France is acting as a team player. France’s willingness to defend the interests of the EU, including those member nations with significant trade with the US, has demonstrated the commitment to the union.
The problem is that while the EU can come to agreements, individual countries can’t make individual trade deals. This is about the EU acting as a bloc, signalling that it’s ready to take action. It seems Macron is signaling a willingness to act, which is a welcome change from the EU’s previous approaches to potential tariffs.