Macron urges halt on US investments until tariff dispute is resolved

French President Emmanuel Macron has called for a suspension of investment in the United States until President Donald Trump's new tariffs on Europe and the world are justified. Macron spoke after Trump slapped broad new tariffs on US trading partners, including a 20% tariff on European Union imports.

"Brutal and Unfounded" tariffs spark European backlash

Macron predicted Americans would be "weaker and poorer" after Trump's tariff action, which he described as "brutal and unfounded" and would have a "massive impact" on the European economy. The French president appealed for Europe to act together in its reaction, dissuading any single action.

European response to tariffs to be in two phases

The French government will respond to US tariffs in two phases. The initial response will be in mid-April, targeting US tariffs already levied on steel and aluminum. The second one will be at the end of April and will be "a more massive response" to the newly imposed tariffs.

French businesses call for retaliation against US tariffs

In response to Macron's call, French business groups called on producers targeted by US tariffs to retaliate by suspending investment plans in the US. The Paris stock exchange closed down more than 3% on Thursday, the biggest one-day drop in two years.

Potential European retaliation

European nations may reduce US goods and services imports, restrict US firms' access to their markets, or even put certain firms' property rights in a deep freeze. French direct investment in the US stood at $370 billion in 2023, making it the fifth-largest foreign investor in the US.