Macron Orders Suspension Of US Investments Over Trump's Tariffs

Macron Orders Suspension Of US Investments Over Trump’s Tariffs.
Paris stock exchange drops 3% amid trade tension.
EU response planned in two stages this April.

French President Emmanuel Macron has called for an immediate suspension of investments in the United States, following President Donald Trump’s imposition of sweeping new tariffs targeting Europe and other global trading partners.

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EKO HOT BLOG reports that speaking on Thursday at a gathering of French business leaders attended by Prime Minister Francois Bayrou and key ministers, Macron described Trump’s 20 percent tariff on European Union imports as “brutal and unfounded,” warning of its severe economic implications.

“Future investments, especially those recently announced, should be suspended until the situation with the United States is clarified,” Macron declared. He predicted the American public would ultimately become “weaker and poorer” as a result of the new trade measures.

Macron urged EU nations to unite in their response and avoid unilateral decisions. He outlined France’s plan for a two-stage European reaction—one in mid-April addressing existing tariffs on steel and aluminium, and a more extensive response by the end of April after assessing the impact across affected sectors in coordination with other EU members.

The remarks come after Trump signed a new executive order under his “Make America Wealthy Again” campaign, triggering international concern and market volatility.

The head of France’s largest employer federation, Medef, Patrick Martin, said the business community viewed the situation as “very serious,” adding that the world’s trade dynamics are now “extremely brutal.”

Echoing Macron’s stance, France Industrie, representing dozens of major French manufacturers, advised companies to consider suspending US investments as a counter-strategy. “To negotiate from a position of strength, we must be prepared to use every lever,” said the group’s president, Alexandre Saubot.

French Overseas Minister Manuel Valls also criticised the US for slapping different tariffs on France’s overseas territories, calling it a “deeply political” and “incompetent” move.

Thursday’s developments sent shockwaves through the financial markets, with the Paris stock exchange plunging more than 3 percent—its steepest drop in two years.

Vincent Vicard, economist at the Centre for Prospective Studies and International Information, told AFP that Trump’s action “blows up the basic rules of international trade.” He, however, expressed confidence in the EU’s capacity to retaliate effectively, suggesting tools such as import restrictions, reduced market access for American firms, and suspension of intellectual property protections.

French direct investments in the US totalled $370 billion in 2023, making France the fifth-largest foreign investor in the country. Meanwhile, US investments in France stood at $142 billion the same year, mainly in the manufacturing sector.

According to the American Chamber of Commerce in France, over 4,200 French company subsidiaries operate in the United States, employing approximately 741,000 people.