French Government Advisory Body issues report on China, which recommends ways to neutralise competitiveness gaps; including implementation of a 30% general tariff, or a depreciation of the Euro by 20-30% vs the Renminbi

French Government Advisory Body issues report on China, which recommends ways to neutralise competitiveness gaps; including implementation of a 30% general tariff, or a depreciation of the Euro by 20-30% vs the Renminbi.

The French government's advisory body's report suggesting a potential 30% tariff and a 20-30% depreciation of the Euro against the Renminbi signals significant trade tensions that could escalate between Europe and China. This could affect global supply chains and prompt reactions in currency markets, especially for the Euro and its relative strength against the USD and JPY. Markets will likely be sensitive to any diplomatic developments or retaliatory measures from China, impacting risk sentiment broadly.