PARIS—European leaders Emmanuel Macron and Mario Draghi have underscored the urgency for Europe to unite in response to the trade policy of U.S. President-Elect Donald Trump. Speaking at the Collège de France, Macron and Draghi expressed shared concerns over Trump’s plans for widespread tariffs, which they warned could lead Europe into a turbulent period of trade conflict with both the U.S. and China.
Trump has proposed tariffs of 10-20 percent on all imports, with a more severe 60 percent tariff directed at goods from China. This approach, Macron argued, is likely to divide the European Union, particularly as individual countries may prioritise either U.S. or Chinese trade links. “We’re clearly entering a world of tariff wars,” Macron remarked, pointing to a need for “defensive trade policies” that protect Europe’s economic interests.
A Call for European Autonomy
Both Macron and Draghi advocated for a stronger and more autonomous Europe. They urged Brussels to bolster strategic investment and reduce dependency on external markets. Draghi, who authored a recent report on European competitiveness, highlighted that without decisive action, Europe risks what he called a “slow agony.” He warned, “If Europe doesn’t change, it may face a prolonged economic decline.”
For Macron, Trump’s protectionism reflects a growing trend where global powers, notably the U.S. and China, disregard World Trade Organisation (WTO) rules. This, he argued, leaves Europe no choice but to act cohesively. “We have sacrificed our domestic demand for years, favouring export-driven macroeconomic models,” Macron explained, calling for Europe to invest in both public and private sectors while simplifying regulations that often impede technological growth.
Pressure on the EU to Pick a Side
Trump’s tariff proposals could soon force the EU to choose between its economic ties with the U.S. and China. Draghi expressed concerns that European regulation could be pressured to make room for American technology firms, while European industries might face added strain. “There will be more tariffs, and Europe is more dependent on the American market than it was five years ago,” Draghi observed.
These tensions have already exposed rifts within the EU, particularly in industries vulnerable to external competition. Germany, for instance, has criticised recent EU tariffs on Chinese electric vehicles, fearing repercussions for its own automotive sector. German Chancellor Olaf Scholz echoed this concern, noting that “overcapacity and underpriced imports remain ongoing threats to Europe.”
A Fragile Political Landscape
Macron and Draghi’s calls for unity come amid political instability within Europe. With French domestic challenges and Chancellor Scholz’s announcement of early elections in Germany, Macron acknowledged the difficulty of aligning European interests. “The political situation is precarious across Europe,” Macron said. Despite these challenges, he believes that Europe’s future depends on the EU overcoming internal divisions and presenting a unified stance.
Macron’s determination to position Europe as a geopolitical power aligns closely with Draghi’s vision of an “autonomous Europe.” This vision, Draghi explained, is less about a traditional economic alliance and more about fostering resilience through investment in defence and technology, facilitated by shared European debt. Both leaders pointed out that European regulations should focus less on bureaucracy and more on facilitating innovation and competitiveness.
Concerns Over Implementation
While Macron and Draghi’s strategic alignment highlights a shared European vision, obstacles remain in enacting these goals. Europe’s major economies, such as Germany and the Netherlands, have deep trade links with China, while France and Spain have typically advocated for more insulated policies. This has created an ongoing struggle to bridge interests, even as Brussels recognises the need for a stronger European approach to trade and economic resilience.
The EU’s recent decision to impose tariffs on Chinese electric vehicles, driven by France’s concerns, has only furthered divisions within the bloc. Some member states, particularly those whose economies are heavily export-driven, argue that these tariffs may jeopardise Europe’s global competitiveness. Macron acknowledged these challenges but underscored that European sovereignty must be a priority: “We no longer have a choice but to stand united,” he stated.
An Optimistic Vision for Europe’s Future
Despite the challenges, Macron ended his remarks on an optimistic note, emphasising that Europe has “all the ingredients on the table” to chart a new course. “If we take the right decisions now, without delay, Europe has the potential to emerge stronger,” he said, pointing to Europe’s diverse strengths and shared values as crucial assets in navigating global tensions.
The contrast between Trump’s rapid transition plans and the EU’s ongoing efforts to unite was not lost on Macron. He suggested that Europe could still gain strategic momentum, despite an uncertain political environment. While Macron’s position on sovereignty resonates with his domestic audience, his broader aim is to steer the EU towards a self-reliant future.
As the EU confronts these pressures, Macron and Draghi’s united front serves as both a call to action and a reminder of the risks posed by division. With Trump’s inauguration approaching, Europe’s response will be critical in determining its role in a shifting global trade landscape.
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