On April 3, 2025, U.S. President Donald Trump shocked global markets by announcing a 10% baseline tariff on all imports, targeting dozens of countries including members of the European Union. In a more aggressive move, he imposed a 20% tariff specifically on EU imports, causing panic in the stock markets and prompting several countries to prepare retaliation.
France Says: “Don’t Copy the US Strategy”
French Finance Minister Eric Lombard has strongly advised the EU not to mirror the U.S. move. Speaking in an interview with BFM TV, he emphasized that reciprocal tariffs could hurt the EU’s own consumers by increasing prices and worsening inflation.
“If we do what the United States is doing, we could end up damaging ourselves more than them,” said Lombard.
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EU Plans a Smarter Countermove
Instead of responding with equal tariffs, the EU is working on alternative strategies. Lombard hinted at a comprehensive package that may include non-tariff measures aimed at pressuring the U.S. back into negotiations.
The European Union is also considering the use of its Anti-Coercion Instrument, which allows the bloc to defend itself against unfair trade practices without necessarily imposing tariffs.
A Divided Europe on How to Respond
Not all EU members agree on the next steps. Countries like Ireland, Italy, Poland, and the Scandinavian nations are hesitant about escalating tensions with the United States. They fear a trade war could backfire on smaller European economies and increase the cost of living across the region.
What’s at Risk for the European Economy?
Matching U.S. tariffs could lead to:
- Higher prices for goods in Europe
- Disrupted supply chains
- Lower consumer spending
- Slower economic growth
This is why experts and leaders like Lombard are urging strategic thinking over emotional reaction.
Macron Urges Business Caution
French President Emmanuel Macron has added his voice to the discussion, suggesting that European companies pause new investments in the U.S. until the situation becomes clearer. This could be used as leverage in upcoming negotiations with Washington.
However, Finance Minister Lombard stressed that such decisions are ultimately up to businesses. Still, he added that the EU is in a moment of global economic confrontation and must act wisely and in unity.
“Europe has all the means to stand tall in this battle,” Lombard said. “But it requires effort, strategy, and solidarity.”
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Final Thoughts: Choose Smart, Not Equal
As the world watches a potential trade war unfold, the EU’s response will be critical. While retaliation might seem like a fair move, it could lead to higher inflation, market instability, and strained relations.
Instead, leaders like Lombard are pushing for creative diplomacy and strong EU unity, believing that smarter actions — not identical ones — will win this economic showdown.
