### Europe Urged to Brace for Trade War With Trump by Macron and Draghi

PARIS - In a stark warning to Brussels, Mario Draghi and Emmanuel Macron called on Europe to swiftly brace itself for an impending trade conflict with Donald Trump. During an hour-long discussion at the prestigious Collège de France, the former European Central Bank chief and the French president emphasized the need for the EU to fortify its economic independence to avoid becoming collateral damage in a potential U.S.-China trade war, exacerbated by Trump's new trade policies.

Trump's proposals include substantial tariffs, ranging from 10 to 20 percent on all imports and a staggering 60 percent on those from China. This strategy portends more severe trade disruptions compared to the tariff disputes witnessed during his first presidency. "We are very clearly entering a world of tariff wars," Macron declared, warning that Europe needs a strategy to cope with the forthcoming economic turbulence between the U.S. and China.

Macron suggested that Trump's tactics might be aimed at pressuring Europe to disentangle its economic engagements with China, by threatening reciprocal duties should Europe continue to engage with Beijing. This, he cautioned, could exacerbate existing rifts within the EU, between member states with stronger economic ties to China and those aligned more closely with the U.S.

Echoing Macron's concerns, Draghi pointed out the impending challenge for Europe, explaining that Trump's administration would classify allies and adversaries based on their economic alliances. "With a tariff wall... if you are a friend, you are in. If you are not a friend, you are out. And I am going to judge you on whether you want to be a friend," Draghi articulated, stressing the inevitability of increased tariffs.

As Europe's policymakers grapple with the potential impacts, trade experts remain divided on whether Trump's moves signify a strategy to extract concessions through threats or a deeper commitment to economic protectionism aimed at safeguarding American jobs. The presence of Robert Lighthizer, former U.S. Trade Representative, in Trump's team points towards the latter scenario.

Draghi referred to Trump's election as a critical moment, urging Europe to intensify its economic initiatives beyond previous plans. This sentiment was reinforced by Brussels, which is preparing to respond decisively to any aggressive tariff measures from the incoming U.S. administration.

Macron highlighted the need for Europe to adopt a more assertive trade policy, mirroring the EU's recent moves to impose tariffs on Chinese electric vehicles. He stressed that delaying action would only lead to insurmountable challenges.

At the Collège de France, a historic institution founded in 1530, Draghi and Macron showcased their camaraderie, promoting a unified message on the European economic strategy. They called for increased investment in strategic sectors and the creation of a capital markets union to support innovation.

While critiquing U.S. protectionism, both leaders encouraged Europe to draw lessons from the U.S. in channeling private capital into strategic sectors. They argued that Europe should enhance funding for innovative companies through capital markets instead of relying on bank loans, as Draghi noted, "Banks are not good at all at financing innovation."

Draghi also criticized excessive EU regulations, which he believes drive tech companies away from Europe. He called for Brussels to eliminate unnecessary red tape to retain technological talents and businesses within the continent.