Macron lashes out against Trump's 'brutal' tariffs, calls for a pause in investment

Emmanuel Macron has lashed out against Donald Trump's decision to impose so-called reciprocal tariffs on virtually every country, calling the move "brutal" and "unfounded" and proposing a temporary halt in future European investments in America.

The pause, he said, should last "until we have clarified things with the United States."

"What would be the message of having major European players start investing billions of euros in the American economy at the moment when they are hitting us?" Macron said during a meeting with French industry representatives.

"We need to have collective solidarity."

During his speech, Macron did not hold back against Trump's unprecedented initiative, which will hit the European Union with a 20% rate starting on 9 April. Separately, the bloc will face 25% rates on exports of steel, aluminium and cars, which are already in force.

Macron appeared incredulous at Trump's expectation that steep duties will help the US reduce the deficits it has with commercial partners, including with the bloc.

The formula with which the White House has calculated the rates has been widely criticised.

In 2023, the EU recorded a surplus of goods with the US worth €156.6 billion but a deficit of services worth €108.6 billion.

"The decision that was announced last night is brutal and unfounded. It is unfounded because trade imbalances cannot be corrected by setting tariffs," he said.

"The foundations of economic theory show the opposite, especially when imbalances do not take into account digital services."

Macron predicted the reciprocal tariffs would prove immediate and unsustainable for the American economy, rendering American firms and citizens "weaker" and "poorer."

Still, he spoke of consequences for Europe that would be "massive" and reverberate across "all sectors" of the economy.

Faced with an "unprecedented" challenge, the EU should leverage its single market of 450 million consumers and come up with a "unified, strong and resolute" response, Macron said.

The European Commission has voiced its readiness to retaliate against the tariffs but cautioned that priority would first be given to negotiations.

"Nothing is excluded. All the instruments are on the table," Macron said, echoing the words of Commission President Ursula von der Leyen earlier this week.

One of these options, the French leader said, could involve activating the instrument the EU has to fight cases of economic coercion. If triggered, the tool can impose tariffs, restrict trade in services and limit access to foreign direct investment and public procurement.

It has never been used since it entered into force in 2023.

Macron also raised the possibility of retaliating against America's "extremely profile" digital services, as well as "the financing mechanisms of the American economy," without explaining what sort of tit-for-tat this would entail.

"We must not rule out anything in the short term," he said. "We must do what is the most effective and the most proportionate but that, in any case, shows very clearly that we are determined not to let things happen, not to have sectors that are victims of these tariffs, and therefore to defend and protect ourselves."

During his fiery intervention, the president issued a stark warning about the shockwaves that Trump's new tariffs are likely to unleash on Asian countries, which have been hit with higher rates than the bloc: 24% for Malaysia, 26% for India, 32% for Indonesia, 36% for Thailand, 46% for Vietnam, 48% for Laos and 49% for Cambodia.

China will be slapped with a 34% reciprocal tariff that will come on top of a previously announced 20% rate, a whopping 54% in total.

The levels are so prohibitive that Brussels fears Asian countries, which are dependent on exports, will send their products en masse to Europe as an alternative market.

China is a particular cause of concern, as it is already under intense scrutiny for flooding the West with low-cost, heavily subsidised goods. The Commission has said it would begin close surveillance to detect any sudden changes in commerce.

"Upon seeing the American market locked up, at least by 30% to 40% of tariffs, (these countries) will redirect their flows to Europe," Macron said.

"It is not necessarily something that we will see right away (but) something we are preparing for."