Just one day after the European Union and United States finalized a contentious trade deal, the French government has voiced strong opposition. Prime Minister François Bayrou publicly condemned the agreement, asserting the need for tariff retaliation to protect European interests. He warned that failing to respond would politically weaken Europe. Bayrou expressed his dismay on social media platform X, stating, “It is a dark day when an alliance of free peoples, gathered to affirm their values and defend their interests, resolves to submit.”
The new trade deal imposes a 15 percent tariff on European imports to the United States while simultaneously lowering barriers for American goods entering European markets. This agreement has sparked significant backlash from France, which has been at the forefront of efforts to push back against previous threats from former President Donald Trump, who had hinted at imposing a severe 30 percent tariff on European imports.
President Emmanuel Macron has not yet commented on the trade deal, but the reaction from his cabinet reflects his increasingly confrontational stance towards the Trump administration on critical trans-Atlantic issues. Macron's recent declaration to recognize a Palestinian state further distances France from the U.S. and its allies, indicating a potential for increased diplomatic friction.
With the trade deal's details now more apparent, Macron's government is doubling down on its call for a unified European response. Benjamin Haddad, France’s minister for European affairs, criticized the trade agreement, describing it as a predatory tactic by the U.S. He urged Europe to activate its anti-coercion instrument, which could involve taxing U.S. digital services or limiting American tech companies' access to public contracts in Europe. Haddad emphasized the need for Europe to respond decisively, stating, “We must quickly draw the necessary conclusions or risk being wiped out.”
During a meeting at Trump's golf resort in Scotland, both Trump and Ursula von der Leyen, the president of the European Commission, touted the scale of the trade deal, which governs nearly $2 trillion in annual trade between the two regions. Despite France’s push for a more stringent stance against the U.S., many European nations favored a swift agreement. Former French ambassador to the U.S., Gérard Araud, pointed out that von der Leyen acted in accordance with the desires of the majority of EU member states that prefer avoiding confrontation with America.
The introduction of a 15 percent tariff on EU goods represents a significant increase, especially considering that Europe had been negotiating a 10 percent tariff just weeks prior. Many European businesses may find themselves at a disadvantage under the new terms, particularly as the previous tariffs were in the low single digits. While the trade agreement offers some relief to Europe’s automotive sector, especially German automakers like Audi and BMW facing 25 percent tariffs, it complicates matters for other industries.
France's significant wine and spirits industry is poised to bear the brunt of the new tariffs. Renowned products like French cognac, wine, and Champagne, which account for nearly half of all Europe’s beverage exports to the U.S., will become more costly for American consumers. As Trump departed for his golf resort with British Prime Minister Keir Starmer, the disparities in trade agreements became increasingly evident. Britain secured a 10 percent tariff on its exports to the U.S., including British-made cars, highlighting the uneven nature of trade relations.
Despite the urgency expressed by French officials, including Laurent Saint-Martin, the minister for foreign trade, who cautioned that this agreement should not mark the end of negotiations, the European response remains to be seen. He stated, “If it is, we would simply have weakened ourselves,” underscoring the need for a collaborative approach to safeguard European interests amidst shifting global trade dynamics.
