Mario Draghi and Emmanuel Macron warned Brussels on Wednesday about a looming trade war with the U.S. During a discussion in Paris, they stressed that Europe must act quickly as tensions between the U.S. and China escalate.
Trump’s proposed tariffs, ranging from 10% to 60%, could spark a chaotic trade conflict, they said, with Europe potentially forced to choose sides between the U.S. and China.
“We’re clearly heading into a world of tariff wars,” Macron remarked, warning that Europe needs to figure out how it will navigate this storm.
Macron suggested that Trump might use tariffs to push Europe into distancing itself from China more quickly, threatening to penalize countries trading with Beijing. This, he noted, could exacerbate divisions within the EU, with some countries more aligned with China and others with the U.S.
Echoing Macron, Draghi warned that Trump’s tactics could force Europe to pick a side. “If you’re a friend, you’re in; if not, you’re out,” he explained, adding that more tariffs are inevitable. While experts debate whether the U.S. is using tariffs as leverage to get Europe to comply or if it’s part of a broader isolationist agenda, Draghi’s recent reflections suggest Europe must urgently adjust its approach.
Trump’s rise to power, Draghi said, is a “wake-up call” for Europe to ramp up efforts to avoid economic decline. Both leaders agreed that the EU must act fast to protect its interests, calling for more aggressive trade policies in the face of U.S. protectionism. Macron highlighted how the U.S. is willing to sacrifice transatlantic value chains to protect its economic interests.
Beyond trade, the two leaders criticized Europe’s economic strategy, calling for bold investments in strategic sectors and a unified capital markets union to drive innovation. They urged Europe to learn from the U.S. and invest in disruptive technologies, with Draghi noting that European banks are poorly suited to fund innovation. Both leaders also pushed for a reduction in bureaucratic red tape, which they argued is pushing tech companies out of Europe. At the historic Paris gathering, Draghi and Macron not only underscored the urgency of the situation but also showcased their close working relationship, presenting a united front on how Europe should navigate the turbulent global trade landscape
