Business magnate, Bernard Arnault, head of Medef, intensifies criticism towards Brussels following the Brussels attacks.
Unleashing the Fury:© Screen capture BFMTV By Kevin Comby Published on
European Business Leaders Take on Brussels in Response to US Trade Policies
After Bernard Arnault, the chief of luxury conglomerate LVMH, revealed his displeasure with Brussels, Patrick Martin, head of the MEDEF, has followed suit, escalating the tension against European Union officials. This comes in the wake of Donald Trump's escalation of trade restrictions, imposing new tariffs on certain US trading partners.
As European products now face a 20% tax when exported to the US, Arnault advised shareholders at a general meeting to ramp up American production to avoid these new tariffs. "It won't be the fault of the companies. It will be Brussels' fault if it happens", he asserted, putting pressure on EU leaders to swiftly negotiate with Washington.
On Wednesday, April 23, Martin appeared on BFMTV, expressing his solidarity with Arnault, stating, "We're trapped in a deadly logic that prevents us from staying on the sidelines of global trade competition". elaborating further, he stated, "We need to simplify much faster than what is currently engaged, both in Europe and in France. We need to regain competitiveness, otherwise, we will become a market for the Chinese and the Americans. We will have less industry, and we will eventually become a poor continent".
How is the EU responding to the tariffs?
Severing Ties or Standing United?
In a similar vein to Arnault, the MEDEF is not new to expressing its discontent with the EU's policies in response to Trump's new trade policy. In an interview with Ouest-France on April 5, Martin called for European unity, stating, "We need to speak with one voice". While urging a firm and gradual response, Martin admonished against "overreaction".
The MEDEF's stance, however, does not indicate imminent doom in US-EU relations for Martin. He asserted, "The Americans [...] are very pragmatic", emphasizing the need to explore new export markets such as Canada, Asia, or Latin America, while urging Europe to support affected sectors and implement measures to improve competitiveness and diversification.
Notable European reactions:
- Ursula von der Leyen, President of the European Commission, dubbed Trump's tariffs as a "major blow to the world economy," emphasizing that they would drive up inflation and costs for consumers, adversely affecting vulnerable populations [2][3].
- The EU is prepared to retaliate with countermeasures if talks fail, aiming to protect European businesses and interests [2][3].
- EU and national leaders have expressed similar sentiments, with French President Emmanuel Macron describing the tariffs as "brutal and unfounded", signaling readiness to respond [1].
It is inferred that European business leaders, like Martin and Arnault, are advocating for negotiation to mitigate or eliminate tariffs while preparing to respond with retaliatory measures, if necessary, to safeguard their interests and counterbalance the economic impact.
- Patrick Martin, head of the MEDEF, has echoed the displeasure of Bernard Arnault, the chief of luxury conglomerate LVMH, towards Brussels, heightening the tension against European Union officials amidst the new tariffs imposed by Donald Trump.
- Martin has advocated for European unity and a firm response to Trump's trade policy, but not an overreaction, urging the exploration of new export markets and support for affected sectors to improve competitiveness and diversification.
- European leaders, including Ursula von der Leyen, President of the European Commission, have expressed concerns over the impact of Trump's tariffs on the world economy and have prepared countermeasures to protect European businesses, if negotiations fail.
- Martin believes that the Americans are "very pragmatic," suggesting potential opportunities for trade in regions like Canada, Asia, or Latin America to offset the effects of the tariffs.
- Martin's stance on US-EU relations does not imply imminent doom, but a call for pragmatic negotiation and preparations to counterbalance the economic impact through retaliatory measures, if necessary.
