France’s top diplomat has warned Donald Trump over trade tariffs (Image: Getty)
has been warned the US has “everything to lose” in a trade war with the by France’s top diplomat.
French foreign minister Jean-Noël Barrot warned thousands of US firms in would be among the “first victims” should Mr Trump impose tariffs on the bloc.
He told France’s Sud Radio that Brussels would retaliate if the US president were to make such a move. Mr Barrot warned: “The US has everything to lose from entering into a trade war with the .”
Mr Barrot added: “We are their main trade partner. If it’s true that Americans buy more European products than the opposite, well Americans invest more in Europe than we invest in the US.
“Why is that? It is because in Europe there are tens of thousands of American businesses manufacturing on our soil.”
Jean-Noël Barrot warned thousands of US firms in Europe would be among the ‘first victims’ (Image: Getty)
He asked: “What would happen if imposed tariffs? It would be American businesses who would be the first victims.”
Mr Trump’s return to the Oval Office has raised concerns around , Canada and Mexico, as well as those within the .
The US leader recently told business leaders, central bank chiefs and government officials in Davos the United States had “hundreds of billions of dollars of deficits with the EU” and nobody was happy about it. Mr Trump warned: “We’re going to do something about it.”
Economic policymakers and trade officials have been warning that tariffs could backfire and fan inflation.
Kristalina Georgieva, managing director of the International Monetary Fund, said in response to Mr Trump’s Davos comments that trade patterns show the benefits of open relationships. She said countries that fare best are ones which are “friends with everybody”.
Don’t miss… [COMMENT] [REPORT]
Donald Trump has threatened to impose tariffs on Mexico, Canada and EU (Image: Getty)
Mr Trump told Republicans on Monday that tariffs would be imposed on copper, steel and aluminium in a bid to boost domestic production.
The US president has insisted tariffs are paid for by other countries trading with the US, but in fact it is importers in the United States that pay, with the money raised going to the Treasury.
Those companies typically pass on the higher costs to consumers in the form of higher prices. Tariffs can still damage countries as they raise the cost of products and make them tougher to sell overseas.
Mr Trump, who has in the past, claims taxing imports will generate more jobs, shrink the US government’s deficit and lower food prices.
Washington in recent years has retreated from its role of promoting global free trade and lower tariffs. That shift has been driven by the loss of US manufacturing jobs, widely blamed on unfettered trade and the rise of China.