Customs duties: the EU must be “firm”, according to French and German economists

Paris – The Franco-German Council of Economic Experts (CFAEE) published a note on Tuesday regarding how the EU should respond to the announcement by American President Donald Trump on April 2 of a 10-point increase in tariffs, stronger increases in certain sectors, and finally “reciprocal tariffs” that are sometimes exorbitant – 20 points for the EU – targeting countries with trade surpluses in goods with the United States.

 On April 9, Mr. Trump announced a three-month moratorium, under pressure from markets concerned about the American economy.

In light of this “unilateral, aggressive, and even erratic” American policy, according to the Deputy President of the Council of Economic Analysis (CAE) Xavier Jaravel – the CAE co-chairs the CFAEE – the EU “must play a leading role in defending the international trading system,” according to the note.

If, at the end of the moratorium in July, the “reciprocal” tariffs are maintained, it will be necessary to move to “draconian” reprisals to “demonstrate the EU’s ability to act to defend its sovereignty,” the note emphasizes. (May 13, 2025)