Germany, France propose EU tool against trade coercion

On Oct. 5, 2026, Emmanuel Macron and Friedrich Merz sent a joint letter and policy paper to Ursula von der Leyen. They wrote that the EU needs a comprehensive framework to complement its toolbox with new legal instruments in a lean and non-bureaucratic way. The core proposal is a country-agnostic tool activated where third countries seek to undermine a level playing field by political or economic means, leading to severe and systematic distortions; it would restrict single-market access via comitology unless a qualified majority is opposed and capture distortions from subsidies to currency manipulation. A diversification instrument would reduce European dependencies and supply-chain concentrations. The paper warned of a massive industrial shock in pharmaceuticals, aerospace, automotive, industrial machinery and chemicals and said protection for narrow categories of goods is now insufficient. German officials said the EU wants a tool comparable to US Section 301 tariffs or China's critical minerals export restrictions. The EU goods deficit with China was about €360 billion last year and €1 billion a day in 2025; the trade commissioner is due in Beijing and the ideas go to next week's Brussels summit. Rated outlets align on these facts; left-rated headlines stress countering China and right-rated ones a rapid tool against economic coercion.