Emmanuel Macron Calls Tariffs 'Blackmail,' White House Shoots Back Saying Trump Is 'Doing What's Right For Our People'

French President Emmanuel Macron sharply criticized powerful nations using tariffs as “blackmail” instruments on Monday, delivering his strongest rebuke as the European Union scrambles to reach a deal with the United States before a looming July 9 deadline.

What Happened: Speaking at the International Conference on Financing for Development in Seville, Spain, Macron called trade wars an “aberration” without directly naming Trump or the United States. His comments came as EU Commission President Ursula von der Leyen warned that “all options remain on the table” in ongoing negotiations with Washington.

According to Reuters, Macron said, “we need to restore freedom and equity to international trade, much more than barriers and tariffs, which are devised by the strongest, and which are often used as instruments of blackmail, not at all as instruments of rebalancing”

Trump unveiled sweeping global tariffs in April, threatening duties ranging from 10% to 50% on imports before partially reversing course with 90-day extensions. The current EU tariff structure includes 10% on most goods, 25% on automobiles, and 50% on steel and aluminum. Without a deal by July 9, all EU products could face 50% tariffs.

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White House Press Secretary Karoline Leavitt rejected Macron’s characterization, calling tariffs “an effective tool to rebuild U.S. manufacturing.” She said Trump “is going to do what’s right for our people and our country,” according to the report.

Why It Matters: The tariff dispute has already roiled European markets. In May, when Trump threatened 50% EU duties, the Euro STOXX 50 dropped 3%, with major exporters taking heavy losses. Deutsche Bank AG (NYSE:DB) fell 6.1%, while luxury brands like LVMH Moët Hennessy Louis Vuitton SE (OTC:LVMUY), which derives 25% of revenue from the U.S., faced significant pressure.

Technology ETFs with European exposure, including the iShares Europe ETF (NYSE:IEV) and Vanguard FTSE Europe ETF (NYSE:VGK), remain vulnerable to escalating trade tensions. German software giant SAP SE (NYSE:SAP) generates 40% of revenue from North America, while Dutch chipmaker ASML Holding NV (NASDAQ:ASML) earns 20-25% from U.S. sales.

The UN trade agency warned Trump’s tariffs could devastate developing nations, with countries like Cambodia, Laos, and Myanmar facing some of the highest levies. Macron specifically criticized imposing tariffs on nations “just beginning their economic takeoff.”

Internal EU divisions complicate negotiations. German Chancellor Friedrich Merz favors a swift, simple deal, while Macron argues that accepting imbalanced terms would undermine Europe’s long-term competitiveness. The French president previously urged European companies to suspend U.S. investments until clarity emerges.

EU officials have prepared a $108 billion retaliatory package targeting U.S. digital services and financial systems, echoing 2018 countermeasures that hit swing-state exports including bourbon and motorcycles. Major U.S. tech companies like Apple Inc. (NASDAQ:AAPL), Alphabet Inc. (NASDAQ:GOOGL), and Microsoft Corp. (NASDAQ:MSFT) faces regulatory scrutiny that could intensify amid trade tensions.

With eight days remaining before the deadline, both sides signal readiness to negotiate while maintaining hardline positions, setting up a high-stakes diplomatic and economic showdown.

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Photo Courtesy: Frederic Legrand – COMEO on Shutterstock.com

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.