EU Threatens Huge Tariffs If China Records Trade Surplus!

thecekodok


French President Emmanuel Macron has warned that the European Union (EU) may be forced to take tougher action against China, including imposing new tariffs, if Beijing fails to address its widening trade surplus with the bloc.


In an interview with the Les Echos newspaper on Sunday, Macron explained that the unbalanced trade relationship is no longer sustainable as China is importing fewer products from Europe, putting pressure on the bloc's industries.


He said that if Beijing does not respond or take corrective measures in the coming months, the EU will have no choice but to consider tougher measures, including tariffs on Chinese goods.


He also said that the issue has been discussed with European Commission President Ursula von der Leyen.


Macron has just concluded a three-day state visit to China, where he stressed the importance of new investment and efforts to restructure economic ties between the two sides.


France currently faces a goods trade deficit of around €47 billion with China last year, while China's trade surplus with the EU reached almost $143 billion in the first half of 2025, a record high for six months.


Trade tensions between France and China have escalated after the EU imposed tariffs on Chinese electric vehicles last year. Beijing retaliated by imposing minimum prices on French cognac, raising concerns that other sectors such as pork and dairy could also be targeted.


Macron has also criticised the US approach to China, which he says is only diverting the flow of Chinese goods into the European market, thereby weakening the position of EU industry.


At the same time, Macron has stressed that Europe needs to improve its competitiveness and that the European Central Bank (ECB) has a key role to play in strengthening the EU's single market. He has called for the ECB's monetary policy to focus more on growth and jobs, not just inflation.


Macron has also expressed concern that the ECB's continued sale of government bonds could push up long-term interest rates and weaken economic activity.