Macron Calls for Suspension of Investments in the U.S. Amid Trump’s Tariff Announcements
French President Emmanuel Macron has urged a temporary suspension of new investments in the United States until the full implications of U.S. President Donald Trump’s recent “brutal and unfounded” tariffs are clarified. Macron’s comments came after Trump imposed sweeping new tariffs, including a 20 percent levy on imports from the European Union, which sparked concern across the global trade community.
Speaking at a meeting with French companies, attended by Prime Minister François Bayrou and French ministers, Macron called for a collective European response to Trump’s tariff actions. He emphasized that any investments announced in recent weeks should be put on hold until the situation with the U.S. is fully addressed. “Future investments should be suspended for a time for as long as the situation with the United States is not clarified,” he stated.
Macron also predicted that the U.S. would suffer economically from the tariffs, which he said would weaken Americans and make them poorer. He warned that the tariffs would have a significant impact on Europe’s economy, which depends heavily on trade with the U.S.
To counter Trump’s actions, Macron urged European unity, warning against unilateral responses. He reaffirmed that Europe’s approach would come in two phases: a response in mid-April regarding existing U.S. tariffs on steel and aluminum, and a more comprehensive response by the end of April after analyzing the sectors most affected.
The French business community has expressed concern over the impact of Trump’s tariff blitz. Patrick Martin, head of the French employers’ federation Medef, described the situation as “very serious,” noting that trade relations were becoming increasingly brutal. He stressed the need to accelerate efforts to improve competitiveness and simplify business practices within Europe and France.
Echoing Macron’s concerns, business group France Industrie, which represents numerous major companies, suggested that French manufacturers affected by U.S. tariffs should consider retaliating, potentially by suspending investments in the U.S. “To negotiate from a position of strength, we have to be ready to use all the levers at our disposal,” said Alexandre Saubot, president of the group.
French Overseas Minister Manuel Valls criticized the U.S. tariffs on France’s overseas territories, calling them a “deeply political” gesture that highlighted an “accumulation of inconsistencies, absurdities, and incompetence.”
The announcement of Trump’s new tariffs caused significant turbulence in the markets, with the Paris stock market closing down more than 3 percent on Thursday, marking the largest daily decline in two years. Economists have warned that the new tariffs undermine the established rules of international trade, but there is confidence that the European Union is well-positioned to respond.
In 2023, French direct investments in the U.S. amounted to $370 billion, making France the fifth-largest foreign investor in the country. By comparison, U.S. investment in France stood at $142 billion. These investments are particularly concentrated in the manufacturing sector. France’s business ties with the U.S. are substantial, with over 4,200 subsidiaries of French companies operating in the U.S. and employing around 741,000 people.
The American Chamber of Commerce in France, which represents the interests of these companies, has expressed concern about the potential long-term effects of the tariffs on trade and investment.
