Macron threatens China with tariffs over trade surplus

Paris (AFP): French President Emmanuel Macron said he has threatened China with tariffs if Beijing fails to take steps to reduce its massive trade surplus with the EU, in remarks published Sunday.

“I told them that if they don’t react, we Europeans will be forced to take strong measures in the coming months,” Macron told business daily Les Echos after returning from a state visit to China.

Such measures could be modelled on steps taken by the United States, he said, “such as tariffs on Chinese products, for example”.

The EU’s trade deficit with China – the world’s second-largest economy after the United States – exceeded 300 billion euros ($350 billion) in 2024, Les Echos said.

The 27 European Union members cannot set trade policy, including tariffs, individually, instead being represented by the EU Commission.

Macron, whose country is the EU’s second-largest economy after Germany, acknowledged that it was a challenge to get consensus on the China tariff question across the bloc.

Germany, with its strong presence in China, he said, “is not yet entirely aligned with our position”.

US President Donald Trump’s administration slapped tariffs of 57 percent on Chinese products this year, although this was cut to 47 percent as part of a deal between both countries reached in October.

“China wants to pierce the heart of the European industrial and innovation model, which has been historically based on machine tools and the automobile,” Macron said.

US protectionism had aggravated the problem for the EU, Macron said, since China was “massively” re-directing products initially earmarked for America towards Europe.

“We are caught in the middle today,” Macron said. “This is a question of life and death for European industry.”

During his visit to China, Macron said the EU needed to accept more Chinese direct investment as part of efforts to reduce the trade deficit.

“We cannot always be importing, Chinese companies must come to Europe,” he told Les Echos, adding, however, that Chinese businesses could not be allowed to act like “predators” with “hegemonic objectives”.

The EU needed to combine protection for its most vulnerable sectors, such as the car industry, with a boost to competitiveness, he urged.