financetom
Economy
financetom
/
Economy
/
French and German leaders to meet under cloud of Trump tariff threats
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
French and German leaders to meet under cloud of Trump tariff threats
Jan 22, 2025 4:29 AM

PARIS (Reuters) - French President Emmanuel Macron and German Chancellor Olaf Scholz were set to meet in Paris on Wednesday to discuss Ukraine and economic issues, as Europe struggles to respond with one voice to threats of tariffs from U.S. President Donald Trump.

Trump, who has also threatened Canada, Mexico and China with heavy duties, said on Tuesday Europe had troubling trade surpluses with the United States.

"The European Union is very, very bad to us," Trump told reporters at the White House on Tuesday. "So they're going to be in for tariffs. It's the only way ... you're going to get fairness."

Many EU countries have export-oriented economies. Already facing higher energy costs because of the war in Ukraine and a slowdown in trade with China, they do not relish the idea of a new front with the U.S.

But there is little consensus in the EU on how to respond.

"Neither Europe nor the U.S. has an interest in an escalating trade war," French government spokeswoman Sophie Primas told reporters.

"We have entered a new phase of negotiations with the U.S. Relations with President Trump are transactional. We must be as determined as the U.S., we must show our strength."

Both Macron -- who lost snap elections last year and has had four prime ministers in 2024 alone -- and Scholz, who is trailing his conservative rival in polls for the German election next month, are weakened politically at home.

The pair have differed on many issues in recent years slowing down decision-making in the EU and leaving a leadership void that EU institutions have struggled to fill.

"Franco-German relations must warm up very strongly and very quickly," said a French government source, speaking on condition of anonymity. "Europe won't be relaunched without a strong Franco-German couple."

One issue on which they appear to agree is on the agenda for the working lunch at the Elysee Palace: a push to cut red tape and improve competitiveness.

But while leading German politicians are pushing for a free trade agreement between Europe and the U.S., France says the EU must reject economic coercion and apply counter-tariffs if attacked.

(Writing by Michel Rose; Editing by Kevin Liffey)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Explainer-The Fed nears its 2% solution after a punishing bout of rising prices
Explainer-The Fed nears its 2% solution after a punishing bout of rising prices
Jul 29, 2024
WASHINGTON (Reuters) - Inflation is nearing the Federal Reserve's 2% target, and the central bank is expected to begin cutting interest rates as soon as September. While it may take a while for the pace of price increases to fall all the way to 2% - and policymakers will be sensitive to signs inflation is taking off again - the...
Fed likely to hold rates steady one last time as inflation fight finale unfolds
Fed likely to hold rates steady one last time as inflation fight finale unfolds
Jul 29, 2024
WASHINGTON (Reuters) - The Federal Reserve is expected to hold interest rates steady at a two-day policy meeting this week but open the door to interest rate cuts as soon as September by acknowledging inflation has edged nearer to the U.S. central bank's 2% target. Policymakers in advance of the July 30-31 meeting were reluctant to commit to the timing...
US Dollar Rises Early Monday, Focus on FOMC, July Employment Report
US Dollar Rises Early Monday, Focus on FOMC, July Employment Report
Jul 29, 2024
07:40 AM EDT, 07/29/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Monday, except for a decline versus the yen, as markets face a busy week that includes the Federal Open Market Committee meeting and the employment report for July. The week starts out light with the Dallas Federal Reserve's manufacturing reading for July at...
Federal Reserve 'Moving Closer To A Rate Cut' Amid Softening Economy And Inflation Trends: Report
Federal Reserve 'Moving Closer To A Rate Cut' Amid Softening Economy And Inflation Trends: Report
Jul 29, 2024
The Federal Reserve is anticipated to maintain its current interest rates, but a potential rate cut in September is on the horizon. This is due to favorable changes in U.S. inflation and a softening labor market. What Happened: The Federal Open Market Committee is expected to keep the benchmark interest rate at 5.25% to 5.50% when it concludes its two-day...
Copyright 2023-2026 - www.financetom.com All Rights Reserved