Macron slams Trump’s ‘brutal’ tariffs, calls for investment freeze

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French President Emmanuel Macron has sharply criticized Donald Trump’s sweeping tariff hikes, calling them “brutal” and “unfounded.” In response, he has proposed a temporary halt to European investments in the United States “until we have clarified things with the United States.”

“What would be the message of having major European players start investing billions of euros in the American economy at the moment when they are hitting us?” Macron asked during a meeting with French industry leaders. “We need to have collective solidarity.”

Trump’s decision, which imposes a 20% tariff on the European Union starting April 9, adds to existing 25% duties on steel, aluminum, and cars. Macron dismissed the rationale behind the tariffs, arguing that trade imbalances “cannot be corrected by setting tariffs.” Citing economic theory, he pointed out that the U.S. calculation of trade deficits ignores digital services, a sector where the EU runs a significant deficit.

“The decision that was announced last night is brutal and unfounded,” Macron said. “The foundations of economic theory show the opposite, especially when imbalances do not take into account digital services.”

Macron warned that the new trade war would have devastating consequences on both sides of the Atlantic. For the U.S., he predicted the tariffs would make American businesses and citizens “weaker” and “poorer.” In Europe, he foresees “massive” repercussions across “all sectors” of the economy.

Faced with what he called an “unprecedented” challenge, Macron urged the EU to respond in a “unified, strong and resolute” manner, leveraging its 450-million-strong single market. The European Commission has signaled its willingness to retaliate but has prioritized negotiations for now.

“Nothing is excluded. All the instruments are on the table,” Macron said, echoing European Commission President Ursula von der Leyen. One possible countermeasure involves activating the EU’s economic coercion mechanism, which allows Brussels to impose tariffs, restrict trade in services, and limit access to foreign investment and public procurement. Though the tool has been in place since 2023, it has never been used.

Macron also hinted at targeting the U.S. tech sector and “the financing mechanisms of the American economy,” though he did not specify what such measures would entail. “We must not rule out anything in the short term,” he said. “We must do what is the most effective and the most proportionate but that, in any case, shows very clearly that we are determined not to let things happen.”

Beyond Europe, Trump’s tariffs are set to hit Asian economies even harder, with rates ranging from 24% on Malaysia to a staggering 49% on Cambodia. China, already facing a 20% tariff, will now be subject to an additional 34%, bringing its total to 54%.

Macron warned that these measures could create a ripple effect, pushing Asian exporters to flood European markets instead. “Upon seeing the American market locked up, at least by 30% to 40% of tariffs, (these countries) will redirect their flows to Europe,” he said. “It is not necessarily something that we will see right away (but) something we are preparing for.”

The European Commission has already pledged to closely monitor trade flows for any sudden shifts in commerce. With tensions escalating, Macron made it clear that Europe will not back down in the face of what he sees as unjustified economic aggression.