UPDATE - French president says he left US with 'little hope for progress' on tariffs dispute

UPDATES WITH MORE REMARKS

By Necva Tastan Sevinc and Ilayda Cakirtekin

ISTANBUL (AA) - French President Emmanuel Macron said on Friday that he left Washington with "very little hope" for resolving the ongoing tariff dispute with the US, citing fundamental misunderstandings in the Trump administration’s trade approach.

"I had personally raised the issue of tariffs during and after this trip, stating that the discussion had been difficult and that I was leaving with very little hope," Macron said during a joint press conference with Portuguese Prime Minister Luis Montenegro.

Macron said discussions with US officials had been difficult, particularly regarding Washington’s claim that the European value-added tax (VAT) functions as a tariff.

"This is factually incorrect," he stated, explaining that VAT applies equally to both domestic and imported goods.

Macron warned that tariffs harm all parties by driving inflation and argued that the US has not benefited from them.

He also criticized the American perception of a large trade deficit with Europe, calling it exaggerated.

"The US trade deficit with Europe is around €50 billion, a relatively minor imbalance in the context of our €1.5 trillion annual trade relationship," he said.

He also tied the dispute to broader geopolitical concerns, saying that imposing tariffs while Europe increases its defense investments would be a strategic mistake.

He warned that if the US proceeds with new tariffs on European products in April, the EU will respond with reciprocal measures.

"We cannot afford to appear weak in the face of such measures," he stated.

Beyond trade, Macron pointed to a broader shift in US foreign policy, highlighting Washington’s withdrawal from Afghanistan and disengagement in Syria as signs of a long-term pivot toward China and the Indo-Pacific.

"For seven years, I have been advocating for European sovereignty and strategic autonomy," he said, adding that Europe must now take decisive action to reduce its dependencies and strengthen its own defense, technology, and economic capabilities.

"The only answer is to become stronger," Macron said, emphasizing the importance of upcoming European summits on defense, security, and competitiveness.

“As Europeans, we must be much more ambitious and decide now—not just decide, but act. I hope that the summit on March 6 will lead to strong actions in defense,” he said, adding that the summit would give the European Commission a mission to secure funding from the markets for Europe’s defense capabilities.

- Macron reiterates support for Ukraine

Macron also reaffirmed support for Ukraine and the need to obtain “lasting security guarantees.”

“If Ukraine faces intensified pressure, Europeans can provide the necessary support for its defense,” the French president further said, adding that this issue will be the “central objective” of the meeting to be held in London on Sunday, followed by discussions at the European Council on March 6.

- French-Algerian relations

Macron commented on their relations with Algeria following French Prime Minister Francois Bayrou’s call to reconsider immigration agreements and newly announced sanctions by France.

“I want to state very clearly that nothing takes precedence over the security of our citizens. When security is threatened by procedures or commitments that are not upheld, the government is right to take action,” the president said.

The statement followed sanctions against Algeria for its refusal to receive certain illegal nationals expelled from France, including the assailant of the Mulhouse attack, as well as the imprisonment of the Franco-Algerian writer Boualem Sansal.

“This is especially important concerning agreements signed in 1968 and those from 1994 regarding the automatic readmission of nationals with valid documents or passports,” Macron added, reiterating the need to “fully respect” these agreements.

“The 1968 agreements were already under review; we will not unilaterally revoke them,” the president also stated, referring to 1968 immigration agreements that granted Algerian nationals special status in France.