France Cautions EU Against Mimicking U.S. Tariff Actions

French Finance Minister Eric Lombard advises the EU against adopting reciprocal tariffs in response to U.S. actions, with concerns over inflation impacting EU consumers. The EU is considering alternatives to tariffs, but member nations remain divided. President Emmanuel Macron suggested halting U.S. investments until trade relations stabilize.

In a decisive move, French Finance Minister Eric Lombard cautioned the European Union against replicating U.S. President Donald Trump's reciprocal tariffs strategy, highlighting potential negative impacts on EU consumers. Lombard emphasized the need for measures beyond tariffs to bring the U.S. to renegotiate trade terms.

President Trump recently imposed a sweeping 20% tariff on EU imports, leading to global market unrest and prompting nations worldwide to consider retaliatory approaches. The EU remains divided on how to proceed, especially concerning the use of the 'Anti-Coercion Instrument' to counteract economic pressure from the U.S.

French President Emmanuel Macron has suggested European firms should pause U.S. investments until clarity in trade relations emerges. However, Lombard affirms companies' autonomy in such decisions while urging a collective European effort to navigate ongoing trade confrontations.

(With inputs from agencies.)