France warned Donald Trump that America has “everything to lose” from a trade war with the European Union.
Foreign minister Jean-Noël Barrot stressed that thousands of US companies based in Europe would be the “first victims” if the new president imposes tariffs.
The European Union would retaliate to such a step by Trump, he added.
But Mr Barrot stressed that Trump had not threatened to hit the EU with tariffs since his return to the White House.
“I think that’s a good thing because the US has everything to lose from entering into a trade war with the European Union,” He told France’s Sud Radio.
“We are their main trade partner.
“If it’s true that Americans buy more European products than the opposite, well Americans invest more in Europe than we invest in the US.
“Why is that? It is because in Europe there are tens of thousands of American businesses manufacturing on our soil.
“What would happen if Donald Trump imposed tariffs? It would be American businesses who would be the first victims.”
Mr Barrot also signalled that France would be ready to send troops to Greenland if requested by Denmark to defend it against a bid by Trump to seize it militarily, but doubted this would happen.
But the Republican tycoon’s vow of tariffs on US copper and aluminium imports would result in higher costs for US consumers because of a shortfall of domestic production and the length of time it would take to renew the industry, say experts.
In a speech to Republican lawmakers on Monday, Trump said he would impose the tariffs on aluminium and copper, metals that are needed to produce US military hardware, as well as steel, to entice producers to make them in America.
“We have to bring production back to our country,” he said.
Trump won the US presidency in November vowing to lower costs for consumers still smarting from an inflation surge in the first half of his predecessor Joe Biden’s term.
However, analysts argue his plan for tariffs on imports to bolster the country’s manufacturing sector, another of his promises, may undercut his price-cutting pledge.
It was not clear how broadly the tariffs could be applied, but several mining chief executives have previously said they are preparing for different scenarios as markets brace for a potential change to trade flows.
“There’s a few unknowns here. Will these tariffs be enacted, and at what scale, and who will pay? Ultimately they generally get paid by the consumer particularly in the case where there’s no domestic substitute,” said analyst Daniel Morgan at Sydney investment bank Barrenjoey.
