The spectre of a transatlantic trade war is also fuelling hopes of a silver lining in Europe: that a commerce deal with four South American countries could get a final green light despite longstanding French opposition.

Forced to come to terms with the growing cracks in its biggest trading relationship, worth 1.6 trillion euros ($1.8 trillion), the EU believes it's time to chase opportunities elsewhere.

"The global balance is shifting, and we Europeans need (new trading partners) very quickly," incoming German chancellor Friedrich Merz said last weekend.

Such is Merz's determination, he suggested French President Emmanuel Macron could be swayed into a U-turn to back the EU accord with Mercosur bloc members Argentina, Brazil, Paraguay and Uruguay -- despite strident opposition from France's farmers.

Twenty-five years in the making, the deal to create a 700-million-customer free-trade area was clinched last December by the European Commission -- but still needs to be signed by member states and the EU parliament.

Macron would "now tend" to look more favourably on the Mercosur accord, Merz........

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