French President Emmanuel Macron has warned the European Union may impose targeted tariffs on Chinese imports due to growing trade imbalances, escalating geopolitical tensions. The statement, made during a high-profile visit to Chengdu, underscores mounting pressure on EU policymakers to address persistent trade deficits.
- EU recorded a €112 billion trade surplus with China in 2024
- Imports from China rose 7.3% YoY; exports to China rose only 2.1%
- DAX fell 0.8%, EURUSD dropped to 1.0725 post-announcement
- TSMC shares down 1.4%, AAPL down 0.6% on supply chain concerns
- CSI300 index declined by 1.2% amid market jitters
- Potential tariffs target EVs, batteries, and semiconductors
French President Emmanuel Macron delivered a stark message during a public address at Sichuan University in Chengdu on December 5, 2025, stating the EU could impose new tariffs on Chinese goods if trade imbalances persist. The remarks, made in the presence of Chinese officials and students, signal a shift in EU economic strategy amid rising concerns over Beijing’s export dominance in key sectors such as electric vehicles, batteries, and semiconductors. The EU recorded a €112 billion trade surplus with China in 2024, according to preliminary data, with European imports from China growing 7.3% year-on-year while exports to China rose just 2.1%. This widening gap has prompted scrutiny from German and French industrial leaders, particularly in automotive and manufacturing. The threat of tariffs could directly affect major Chinese exporters such as BYD, CATL, and Huawei, while also impacting European firms reliant on Chinese supply chains. Markets reacted swiftly: the DAX fell 0.8% on the news, while the EURUSD dropped to 1.0725, reflecting concerns over potential trade fragmentation. Technology stocks were especially sensitive, with TSMC's shares down 1.4% and AAPL seeing a 0.6% decline as investors reassessed supply chain resilience. The CSI300 index dipped 1.2%, indicating market jitters in China’s equity space. The EU’s potential action could prompt retaliatory measures from Beijing, affecting multinationals with significant exposure across both regions. The move would not only influence currency dynamics but also disrupt global value chains, particularly in high-tech and clean energy industries where EU-China interdependence remains high.