France presses for EU–US tariff deal before deadline

France’s finance minister has issued a stark warning that the European Union could face sharply higher US tariffs within days if negotiators fail to strike a deal with Washington, underscoring rising transatlantic trade tensions that risk hurting European industry.

Speaking at an economic forum in Aix-en-Provence on Saturday, French Finance Minister Eric Lombard said he hoped talks between EU and US officials taking place over the weekend would succeed in averting the threatened tariff hikes before a critical July 9 deadline “On tariffs, it could all be decided this weekend,” Lombard said, as quoted by AFP. “If not, Europe will undoubtedly have to respond more vigorously to restore the balance.”

Steep tariff snapback deadline

According to AFP reporting, if no agreement is reached by Wednesday next week, higher levies on European exports to the US will automatically come back into force. The default tariff on EU imports is set to double to 20 per cent or even higher, with US President Donald Trump at one point threatening duties as high as 50 per cent. Talks between Brussels and Washington this weekend are seen as a last-ditch effort to avoid a trade escalation that could hit European exporters hard at a time of already slowing economic growth in the eurozone.

European Commission President Ursula von der Leyen said on Thursday that Brussels was aiming for an “agreement in principle,” though she cautioned that even such a deal would require further negotiations to finalise the details, AFP reported. However, the Commission has also warned that even with an agreement, there may still be an imbalance in trade measures between the EU and the US.

France vows to defend industry

At the Aix-en-Provence forum, Lombard warned that Europe must be prepared to defend its industrial base not just from US tariffs but also from China’s industrial overcapacity. “It is essential to protect our industry from the US and China,” he said, according to AFP.

Using stark imagery, Lombard likened the global trade environment to a playground where rules were being upended by aggressive economic powers. “Imagine the world as a playground where everyone is playing… and following the rules,” he said. “And then three bullies come along and don’t follow any rules, they knock over the game tables and push around the children who were playing nicely. That’s the world of predators,” he added, naming the US, Russia, and China as examples.

Concerns about Chinese overcapacity

Lombard also argued that existing tariffs on sectors like steel and automotive goods were not enough to counter China’s industrial strategy.

“We need to do it across all our industrial sectors,” he said, warning that China’s policy of maintaining production capacity exceeding 50 per cent of global market share in key industrial segments risked “destroying our industry.”

High-stakes test for Brussels

The tariff deadline comes at a politically sensitive moment for Brussels. European leaders have been under pressure to show they can defend EU economic interests while avoiding a costly trade war with Washington, even as relations with Beijing grow more strained over issues such as green technology competition and human rights.

A failure to strike a deal would risk exposing European manufacturers to steep US tariffs just as they face growing competition from China’s subsidised industries. As reported by AFP, EU negotiators are racing to finalise an agreement in the coming days in order to avert the tariff snapback and head off another transatlantic trade conflict.

(With inputs from the agencies)