France and Germany Agree a Last-Resort Tool Against Trade Threats

A joint instrument

Paris, 5 October 2026. Germany and France agreed on a last-resort tool against trade threats, with Berlin on board for what officials describe as a second-strike weapon.

The target is pressure over key supplies, including Chinese exports of rare earths and magnets. The Financial Times reported the agreement on Monday.

What it is not

The tool is a deterrent, not a tariff already in force. Details of the trigger and the retaliation list were not published in the first accounts.

For French industry, rare-earth magnets sit inside cars, turbines, and electronics. A shared instrument with Berlin is the point Paris wanted on paper.