Jean‑Herve Lorenzi warns Europe of deepening trade conflict amid US tariff surge

Jean‑Herve Lorenzi, president of the French think‑tank Le Cercle des économistes, said Europe has lost the structural anchors that once ensured economic stability. He warned that deindustrialisation, driven by decades of outsourcing to China, leaves the continent vulnerable and calls for a strategic agreement with Beijing to prevent further hollowing‑out of the European industrial base.

At the same time, former US President Donald Trump revived large‑scale tariff policies in 2025, imposing 20‑50% duties on allies such as Japan, the EU and Mexico. The tariff wave has raised global protectionism, increased consumer prices and strained trade flows, although some tariffs have been partially rolled back and courts have struck down portions as unconstitutional. Despite the shift, new trade deals are proceeding, including a EU‑India free‑trade agreement, the EU‑Mercosur pact and a limited US‑EU tariff cap agreed in late 2025.

Lorenzi’s cautions and the US tariff resurgence highlight an escalating trade conflict that could reshape Europe’s industrial strategy and broader global economic relations.