Macron Threatens EU Tariffs on China Over Subsidies and Widening Trade Deficit

Macron Issues Stern Warning to Beijing

French President Emmanuel Macron has issued a stark warning to China, indicating that the European Union may be compelled to impose tariffs on Chinese goods if Beijing fails to address its widening trade surplus and the impact of its state subsidies on European industries. The comments were published in the French business daily Les Echos on December 7, 2025, following Macron's recent state visit to China.

Macron conveyed a clear message during his trip, stating that if China does not react, 'we Europeans will be forced to take strong measures in the coming months.' He suggested these measures could mirror actions taken by the United States, including new tariffs on Chinese products.

Escalating Trade Imbalance and Industrial Concerns

The warning comes amidst growing alarm over the significant trade imbalance between the EU and China. According to Les Echos, the EU's trade deficit with China surpassed €300 billion ($350 billion) in 2024. Other reports indicate the deficit reached €305.8 billion in 2024. France's own trade deficit with China stood at approximately €47 billion ($54.7 billion) last year.

Macron emphasized that China's industrial rise poses a direct threat to Europe's economic foundations, particularly in sectors such as electric vehicles, batteries, solar panels, machine tools, and automobiles. He described the situation as 'a question of life and death for European industry,' arguing that Chinese overcapacity and state-backed exports are eroding Europe's industrial base and innovation model.

Potential EU Actions and Internal Divisions

The French President indicated that he discussed the matter with European Commission President Ursula von der Leyen, signaling a coordinated European approach. However, implementing tariffs across the 27-member EU bloc requires consensus through the European Commission, a process that can be challenging. Macron acknowledged that Germany, with its strong economic ties to China, 'is not yet entirely aligned with our position.'

The situation is further complicated by US protectionist policies, which Macron noted have exacerbated Europe's challenges by redirecting Chinese products initially destined for the US market towards Europe.

Broader Context of EU-China Trade Relations

The EU has already taken steps to address perceived unfair trade practices. In October 2023, the European Union initiated an investigation into subsidies in the Chinese electric vehicle industry, concluding it a year later by imposing countervailing duties averaging 20.8 percent on top of an existing 10 percent on EV imports from China. In response, China imposed duties on EU pork imports in September 2025.

Despite the escalating rhetoric, Macron expressed a belief that a negotiated solution with Beijing remains possible. He also called for China to increase direct investment in Europe, provided such investments are not 'predatory' and contribute to mutual value creation.