Macron Threatens China with EU Tariffs Over €300bn Trade Surplus
Macron warns China on EU tariffs over trade deficit

French President Emmanuel Macron has issued a stark warning to China, threatening the imposition of European Union tariffs if Beijing does not take concrete steps to reduce its enormous trade surplus with the bloc.

A Stark Warning from Paris

In an interview with the business newspaper Les Echos published on Sunday, December 7, 2025, Macron revealed he delivered this message directly during a recent state visit to China. "I told them that if they don't react, we Europeans will be forced to take strong measures in the coming months," the French leader stated. He suggested these measures could mirror actions by the United States, specifically "such as tariffs on Chinese products, for example."

The Staggering Scale of the Trade Imbalance

The core of the dispute is a yawning trade gap. According to the report, the EU's trade deficit with China surpassed 300 billion euros (approximately $350 billion) in 2024. Macron framed this economic challenge as an existential threat to Europe's industrial base. "China wants to pierce the heart of the European industrial and innovation model, which has been historically based on machine tools and the automobile," he argued, singling out the car sector as particularly vulnerable.

He further explained that US protectionist policies have worsened the situation for Europe, as China redirects products originally intended for the American market to the EU "massively." "We are caught in the middle today," Macron said. "This is a question of life and death for European industry."

The Challenge of European Unity and a Path Forward

Securing a unified EU response presents a significant hurdle. While France is the EU's second-largest economy, trade policy is set collectively by the 27-member bloc through the European Commission. Macron acknowledged the difficulty, noting that Germany, with its substantial business interests in China, "is not yet entirely aligned with our position."

For context, the administration of US President Donald Trump imposed tariffs of 57 percent on Chinese goods earlier in the year, later reduced to 47 percent as part of an October agreement.

Macron proposed a dual strategy for Europe. On one hand, he urged accepting more Chinese direct investment as a way to help balance the trade deficit, stating, "We cannot always be importing, Chinese companies must come to Europe." However, he cautioned that such businesses must not act like "predators" with "hegemonic objectives." On the other hand, he called for combining protection for vulnerable sectors like automotive with a push to boost overall competitiveness.