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Trump's Trade War: What Answers for the European Union?

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Couverture Note Sébastien Jean 2025
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The announcement, on April 2, 2025, of “reciprocal tariffs” by the United States has opened a sequence of profound break with decades of established trade policy practices, where the administration behaviour has been marked by dogmatic blindness, amateurism, and self-serving interests. 

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USA and European Union Trade, Tariffs and Commercial War
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Finding a coherent strategy behind the rapid succession of measures, suspensions, and purported agreements is challenging, and the successive policy reversals are best explained by the administration’s own inconsistencies. The damage is nonetheless real for partners. For the European Union, it calls for firm but measured responses, without seeking symmetrical retaliation. While division is a threat, the inherent slowness of European procedures could be an asset in this context, as the United States will be confronted with its own contradictions. Broad retaliatory measures should be considered, beyond trade in goods, and the hypothesis of a first activation of the anti-coercion instrument should not be ruled out at this stage, on the contrary.

 

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979-10-373-1044-6

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Sébastien JEAN

Sébastien JEAN

Intitulé du poste

Associate Director of Ifri's Geoeconomics and Geofinance initiative

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Geoeconomics and Geofinance Initiative
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To analyze the impact of power rivalries and tensions on globalization, this initiative combines economic and political expertise. In the face of growing geopolitical risk, the goal is to decipher the dynamics of reconfiguration: protectionist pressures, sanctions, restrictions, industrial policies, and economic security concerns are redefining the rules of international trade. These tensions are also transforming international financial relations by undermining the foundations of trust and reshaping the global monetary system. They raise questions about the role of several key players: sovereign wealth funds, central banks, digital platforms, multilateral institutions, and financial infrastructure operators. In a context of profound disruption, simply refining existing approaches is no longer sufficient. The initiative is designed as a flexible model, drawing on diverse expertise to offer both broad overviews and targeted analyses. It also provides a platform for stakeholders and experts from various backgrounds to debate these issues freely.

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The Transfer Paradox. Rethinking Global Imbalances

Date de publication
16 July 2026
Accroche

Global imbalances have come back to the top of the policy agenda. Many analyses and reports have been produced over recent months. The standard prescription involves better coordination of macroeconomic policies, with three familiar recommendations: higher consumption in China, higher investment in Europe, and fiscal consolidation in the United States.

Sébastien JEAN Jean-Pierre LANDAU

Global imbalances, industrial policies, and the challenge of surging Chinese trade surpluses

Date de publication
13 April 2026
Accroche

The analysis of global imbalances faces a paradox: while the analytical focus has for decades been on the sustainability of current account deficits, out of concerns about their financial consequences, international political tensions stem mainly from enduring trade surpluses and their industrial impacts. Beyond President Trump’s outbursts, fears about the consequences of China’s trade surpluses are increasingly widespread. 

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Can Interdependence Persist in Tense Times? Insights from the 2nd Paris Geoeconomic Dialogue

Date de publication
18 March 2026
Accroche

Ifri’s 2nd Paris Geoeconomic Dialogue brought together in November 2025 experts, academics, and decision-makers around six themes relating to the prospects for interdependence in an increasingly tense international environment.

Sébastien JEAN Marc-Antoine FAURE
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Central Banks: Challenges and Tools in Geopolitical Rivalries

Date de publication
04 March 2026
Accroche

Central banks have become major strategic players in international economic balances. Faced with systemic crises (2008, Covid-19), the major central banks have developed unprecedented coordination of their interventions, fostering the emergence of the “Jackson Hole consensus.”

Arnaud ODIER
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USA and European Union Trade, Tariffs and Commercial War
Tomas Ragina/Shutterstock.com

How can this study be cited?

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Couverture Note Sébastien Jean 2025
Sébastien JEAN, « Trump's Trade War: What Answers for the European Union? », Papers, Ifri, 14 May 2025.
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