French Finance Minister Eric Lombard told AFP on Thursday that the European Union would “do the same” if the United States follows through with 25 percent tariffs announced by President Donald Trump.
Trump threatened Wednesday to impose 25 percent tariffs on goods imported from the European Union.
“It is clear that if the Americans maintain the tariff hikes, as President Trump announced, the EU will do the same,” Lombard said in an interview on the sidelines of the G20 finance ministers meeting in Cape Town.
“Even if it is not in the general interest, we too must protect our interests and the interests of the countries of the union,” Lombard told AFP.
Asked about Trump’s comment that the EU was created to “screw” the United States, the minister insisted: “The United States is a great ally.”
He emphasised the “historical depth” of the transatlantic partnership and its “very intertwined” economies.
“There is no alternative either for the United States in trade with the rest of the world, or for us in trade with the United States,” he said. “It is in the interests of both economies to continue to cooperate.”
Diplomats from the G7 countries spoke to US Treasury Secretary Scott Bessent Thursday, telling him that “tariff wars lead to inflation, lower growth and are not a solution”, Lombard said.
Bessent did not travel to Cape Town for the G20 talks, but attended the G7 meeting virtually.
“Minister Bessent told us that negotiations would start on April 2,” Lombard said, adding the EU would “represent the European countries with the aim of reaching a fair agreement”.
“Europe is fully united,” he said.
While Trump’s threats laid bare his hostility towards its longtime trade partner, declaring that the EU had “really taken advantage of us”, Lombard stressed that the implementation of any tariff hike was still unclear.
– ‘We will talk’ –
At their talks in Washington Monday, Bessent “presented himself as being open to discussion on all subjects,” he told AFP. “So I interpret this openness as: we’re going to talk.”
The United States and European Union were each other’s biggest trading partners and also major investors their respective economies, the minister said.
“There are European parts in Boeing and American parts in Airbus. The same is true of the automotive industry and many other sectors. It’s this dimension of inter-relationships between economies that we need to take into account to enable them to develop.”
Tax issues were central to the agenda of at the G20 finance ministers meeting in Cape Town.
Lombard told AFP he had reiterated that France was “keen to see progress” on the issue of taxation of the ultra-rich. “We are a long way from implementing measures, but these are projects supported by France,” he said.
The finance ministers also discussed the over-indebtedness of African countries, which is a priority for South Africa in its year at the helm of the G20.
“We have made progress in dealing with the debt of two countries: Zambia and Ghana,” Lombard said.
“We are working on Ethiopia. This is an area where we are continuing to make progress and we hope that this framework will continue to support indebted countries,” he added.
