French President Emmanuel Macron has cautioned that the European Union may be compelled to adopt stronger trade actions against China if Beijing fails to address its growing surplus with the bloc. He stressed that China&rsquo;s rising trade advantage is hurting European industries as imports from the EU continue to decline.
Macron argued that the bloc cannot maintain economic stability if the trade gap keeps widening. He hinted that the EU could consider measures similar to those taken by the United States, including the possibility of tariffs on Chinese imports. The French leader has reportedly discussed these concerns with European Commission President Ursula von der Leyen.
Macron recently returned from a three-day state visit to China, where he urged Beijing to increase investment and strengthen economic cooperation. France recorded a goods trade deficit of nearly &euro;47 billion with China last year. Meanwhile, China&rsquo;s trade surplus with the EU surged to almost $143 billion in the first half of 2025, the highest ever for six months.
Relations have been strained since the EU imposed tariffs on Chinese electric vehicles last year, a move Paris strongly supported. Beijing responded with pricing restrictions on French cognac, raising concerns among European agricultural exporters about further retaliation.
Macron expressed concern that the US strategy toward China has redirected Chinese shipments into the European market, putting additional pressure on EU industries. He warned that Europe now risks being caught between two major economic powers, calling the situation critical for the survival of many sectors. He also noted that Germany does not fully align with France&rsquo;s position.
Macron emphasised that Europe must enhance its competitiveness while urging the European Central Bank to support growth and employment rather than focusing solely on inflation. He also cautioned that the ECB&rsquo;s continued sale of government bonds may raise long-term interest rates and pose risks to economic activity.
He stated that Europe must remain a stable and credible investment zone to safeguard its economic future.

Macron warns EU may impose tariffs if China ignores rising trade imbalance

EU Signals Tough Stand on China Trade Gap

Macron warns EU may impose tariffs if China ignores rising trade imbalance

December 8, 2025 | 15:18 IST