PARIS: French President Emmanuel Macron and German Chancellor Olaf Scholz sought to project unity at a meeting in Paris on Wednesday, as Europe struggles to respond with one voice to threats of tariffs from US 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 and was “in for tariffs”.

In statements to reporters before their working lunch at the Elysee Palace, both Macron and Scholz insisted that Europe was strong and the Franco-German tandem solid, while expecting difficulties. “President Trump will, that much is already clear, be a challenge,” Scholz said.

“Our position is clear. Europe is a large economic area with around 450 million citizens. We are strong. We stand together. Europe will not duck and hide.” Macron has long pushed for Europe to be more self-reliant.

“After the inauguration of a new administration in the United States, it is necessary more than ever for Europeans and for our two countries to play their role of consolidating a united, strong and sovereign Europe,” he said. The two leaders mentioned the steel, car and chemicals sectors — possible targets for US tariffs — as crucial for the European economy.

Transactional relations with Trump

Some business leaders and analysts have said Trump’s first term offers evidence that he often publicly launches threats of tariffs and other measures to use as leverage, without ultimately carrying them out. But others fear he could be emboldened by a strong popular mandate and more support in both houses of Congress.

“The European Union is very, very bad to us,” Trump told reporters 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 US. “We have entered a new phase of negotiations with the US,” French government spokeswoman Sophie Primas told reporters before the meeting.

“Relations with President Trump are transactional. We must be as determined as the US, 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 surveys before 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. “Europe won’t be relaunched without a strong Franco-German couple.” But while leading German politicians have been pushing for a free trade agreement between Europe and the US, France says the EU must reject economic coercion and apply counter-tariffs if attacked.

Published in Dawn, January 23rd, 2025