France braces for tariff showdown as global trade tensions rise
France is prepared for this trade war, according to government spokeswoman Sophie Primas on Thursday, in response to the US announcement of a 20% tariff on European Union products. She stated that in April, France will coordinate with the EU to address the situation.
Trump "thinks he is the master of the world," said the spokeswoman during an interview with broadcaster RTL. She indicated that two waves of reactions to the US tariffs should be anticipated. The first wave, in response to the tariffs on steel and aluminum, is expected in mid-April. The second wave, likely at the end of the month, will address a broader range of goods and services. "We are also going to attack services. For example, online services, which are not taxed today but could be," added Primas.
The Élysée Palace previously announced that President Emmanuel Macron would meet on Thursday with representatives from all national sectors affected by the impending US tariffs.
The French Federation of Wine and Spirits Exporters (FEVS) has estimated that the new tariffs could lead to a drop in sales of French wine and spirits in the US by at least 20%.
Following Trump's announcement of the tariffs, leaders from countries such as Australia, Japan, China, the United Kingdom, and Italy weighed in on the decision.
The order Trump signed on Wednesday enforces "reciprocal tariffs" of at least 10% on imported goods, with a 20% tariff specifically on goods from the EU.
Reuters: The beginning of a global trade war
The US tariffs aim to match half of the combined tariffs and non-tariff trade barriers other countries employ. For China, the tariffs will be 34% (adding to the existing 20%, totaling 54%), Japan 24%, India 26%, and South Korea 25%. The universal 10% tariff rate is set to go into effect on April 5, with specific tariffs on individual countries starting on April 9.
According to Reuters, Trump's imposition of these tariffs marks the beginning of a global trade war, which could potentially drive up inflation and stifle economic growth both in the US and worldwide.
