US president Donald Trump imposed on Wednesday 20 % work on all imports from the European Union. He thus threw the alliance into America's worst trading partner category. European Commission president Ursula von der Leyen announced retaliation.
Lombard said on Friday that if the trade war escalates and will have a negative impact on France's economical growth, the government must accept the fact that the deficit will deepen this year. He added that the ministry does not plan to take any extremist action.
— Even if things get worse, I don't want to cut public spending anymore. — declared the French minister, besides excluding taxation increases.
France's nonsubjective was to reduce the budget deficit to 5.4% of GDP this year, from 5.8% in 2024. The country is already facing the EU excessive deficit procedure after it breached spending rules in 2023, which prohibit associate States from maintaining deficits above 3% of GDP.
