French Prime Minister Francois Bayrou warned on Thursday concerning the risks posed by US President Donald Trump‘s resolution to impose heavy import taxes on foreign-made items.
“This decision is a catastrophe for the economic world. It is a huge challenge for Europe. I believe it is also a catastrophe for the United States and for American citizens,” Bayrou stated on the sidelines of a convention on the French Senate, in line with the broadcaster BFMTV.
Bayrou stated protectionist insurance policies may have extreme long-term penalties.
“The idea that each of the world’s major regions will close in on itself and that trade wars must now be the rule, presents dangers which will, unfortunately, come true over time,” he cautioned.
On Wednesday, commerce specialists on the US Cato Institute stated in a press release that Trump’s import taxes will method tariffs not seen since 1930, which “incited a global trade war and deepened the Great Depression.”
Bayrou additionally accused the US of “turning against its allies” and “no longer being in solidarity with them” by means of this “trade war.”
He stated the world had entered a interval of uncertainty, with the tariff hike compounding current geopolitical tensions.
“These are serious times we have entered, and this opens a period of uncertainty that calls into question what we have taken so long to build and which calls into question our economy and French society as a whole,” he famous.
Bayrou is about to satisfy with a number of authorities ministers and trade representatives on the Elysee Palace on Thursday afternoon to debate the influence of the US tariffs.
He expressed concern that affected sectors in France and Europe could be “held hostage” by the financial fallout.
“It is up to us to invent the new world that must come, and we know part of the face of this new world: that Europe finally accepts to exist as a power capable of defending itself and of thinking about what the future of a different relationship with the United States and a different economy will be,” he concluded.
– EU LEADERS PLAN RESPONSE
French Foreign Minister Jean-Noel Barrot stated on the NATO overseas affairs assembly in Brussels that European leaders are getting ready a agency response to the US tariffs.
He emphasised that unity amongst alliance members is extra essential than ever, because the US resolution to implement reciprocal tariffs threatens financial stability on each side of the Atlantic.
“Europe will initiate consultations to consider, if necessary, additional measures in response to the reciprocal tariffs applied last night,” he stated, stressing the EU’s dedication to defending its financial pursuits.
Trump on Wednesday introduced sweeping tariffs on dozens of nations and financial areas, together with the European Union. Imports from the EU will face a 20% surcharge, whereas others might be topic to a minimal price of 10%.
Source: www.anews.com.tr