Christophe Petit Tesson/Pool via AP
- French government ministers on Tuesday said that both France and the European Union will fight back against Trump’s proposed tariffs.
- French Finance Minister Bruno Le Maire called the proposed tariffs “unacceptable” according to Reuters, adding “in case of new American sanctions, the European Union would be ready to riposte.”
- On Monday the Trump administration proposed a whopping 100% tariff on $2.4 billion worth of French goods going to the US, in retaliation for the country’s new 3% digital services tax.
- On analyst called Trump’s tactics the “the weaponization of trade” as stocks slid on the news.
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French government ministers said that France and the European Union are willing to fight back against Trump’s tariffs after the US proposed a 100% duty on $2.4 billion worth of French goods going to the US.
French Finance Minister Bruno Le Maire on Tuesday called the proposed tariffs “unacceptable” according to Reuters, adding “in case of new American sanctions, the European Union would be ready to riposte.”
Le Maire added that the tariffs were not “not worthy of an ally, and it’s not the behavior we expect from the US toward one of its main allies, France, and more generally, Europe,” according to Bloomberg.
Meanwhile Agnes Pannier-Runacher, French junior economy minister, said in a radio interview on Tuesday that France will be “pugnacious” in its US dealings and it won’t back down on its digital tax plans, according to Reuters.
This comes after Monday’s news that the Trump administration proposed a whopping 100% tariff on $2.4 billion worth of French goods going to the US. It’s in retaliation for the country’s new 3% digital services tax which is targeted at American giants such as Amazon and Facebook.
‘It’s no coincidence’
“What we are seeing is the weaponization of trade and using it for diplomatic purposes,” said Neil Wilson, chief markets analyst at Markets.com. “It is no coincidence that these announcements come as Trump lands in London for the NATO summit and a chance to demand European allies spend more on defence.”
Wilson added that the European tariffs take attention away from China, “which clearly are not yielding the necessary outcome as far as the White House is concerned.”
Stocks cratered at the close of trading on Monday on news of the new tariffs, with the Dow falling 1%, while the Nasdaq fell 1.1%. On Tuesday, Asian and European stocks followed, drifting lower. US futures are signaling a lower start at the open.