French President Emmanuel Macron on Thursday called for a temporary suspension of new investments in the United States following U.S. President Donald Trump’s sweeping new tariffs on European goods, describing the measures as “brutal and unfounded.”
Speaking at a high-level meeting with French business leaders, Prime Minister François Bayrou, and cabinet ministers, Macron warned that Trump’s latest round of protectionist trade policies — including a 20 percent tariff on imports from the European Union — could have severe repercussions on global markets and transatlantic relations.
“Future investments, including those announced in recent weeks, should be put on hold until there is clarity on the situation with the United States,” Macron said. He warned the tariffs would leave Americans “weaker and poorer,” while posing a “massive impact” on Europe’s economic stability.
The French leader called for a united European front in response, cautioning against fragmented or unilateral measures. He outlined a two-phase EU response: the first, expected in mid-April, will address existing U.S. tariffs on steel and aluminum; the second, planned for the end of April, will target the broader range of tariffs recently announced by Washington after thorough sectoral analysis and EU coordination.
Business leaders echoed Macron’s concerns. Patrick Martin, president of France’s largest employers’ federation, MEDEF, described the situation as “very serious,” stressing the urgency of making European and French markets more competitive and resilient amid shifting global trade dynamics.
“The world is reorganizing. Trade relations are becoming more brutal. Threats are multiplying. The time has come to accelerate simplification and competitiveness,” Martin said.
France Industrie, a key industry body representing major manufacturers, urged companies to consider retaliatory steps, including halting U.S. investments. “To negotiate from a position of strength, we must be ready to use every lever available,” said its president, Alexandre Saubot.
French Overseas Minister Manuel Valls also condemned what he described as discriminatory U.S. tariffs targeting French overseas territories, calling the move “deeply political” and reflective of “inconsistencies, absurdities, and incompetence.”
The Paris stock exchange closed down over three percent on Thursday — its steepest daily decline in two years — amid investor anxiety over the trade standoff.
Vincent Vicard, an economist at the Centre for Prospective Studies and International Information, warned that the U.S. tariffs “blow up the basic rules of international trade,” but added that the EU possesses the tools to respond. Measures could include reducing imports of American goods, limiting U.S. market access, or suspending certain intellectual property protections.
In 2023, French direct investment in the United States totaled $370 billion, making France the fifth-largest foreign investor in the U.S., according to the Bureau of Economic Analysis. U.S. investment in France was significantly lower at $142 billion, with most activity concentrated in the manufacturing sector.
Over 4,200 French company subsidiaries operate in the U.S., employing approximately 741,000 people, according to the American Chamber of Commerce in France.