Merz and Macron want the EU to hit back harder — and faster — against trade threats

Sander Tordoir, chief economist at the Centre for European Reform, called the letter and position paper a “watershed” moment. 

“What the two leading European capitals are signaling is that they want to flip the switch and have a more structured, comprehensive set of policies to slow down the impact of the second China shock on European industry,” said Tordoir, who has advocated that Europe adopt U.S.-style 301 tariffs in the past.  

“One of the major actors watering down the ACI back in the day was in fact Germany,” Tordoir said. “Germany has transitioned from hesitator-in-chief on stronger European trade tools to actively backing a number of concrete proposals.”