French Finance Minister Calls on Companies to Demonstrate "Patriotism" in Response to US Tariffs

In response to the US announcement of massive tariffs and risks to French employment, French Finance Minister Le Maire said on the 4th that French companies should act with a spirit of "patriotism" to avoid giving the US an advantage in the escalating trade conflict. French Industry Minister Marc Fesneau will convene an industrial committee on Tuesday, where "representatives from all sectors of employers and employees will attend." French President Macron called on French companies to suspend their investments in the US on March 3rd in response to Trump's new tariffs.

French Finance Minister Le Maire clearly stated on the 4th that "it is obvious that if a major French company agrees to set up a factory in the US, it will give the Americans an extra point." French Minister for Foreign Trade Laurent Saint-Martin advocates maintaining a "balance of power" with Washington to achieve "effective negotiations."

French companies have deep roots in the US. In 2023, France was the third largest investor in Europe and the fifth largest foreign investor in the US. Major companies such as CMA CGM Group and Schneider Electric (announced $700 million investment) announced significant investments in the US in March. These large enterprises have not yet made it clear whether they will stop investing in the US.

The Saint-Gobain Group announced in February a $40 million investment to build a factory in New York State. The company decided to "not suspend" its operations because it has decided to serve the US market.

French companies have deep roots in the US. In 2023, France was the third largest investor in Europe. According to data from the US Bureau of Economic Analysis (BEA), France's direct investment in the US reached $370 billion in 2023, ranking fifth among countries investing in the US.

French Prime Minister François Beur said: "First and foremost, we must be vigilant about French producers and companies producing and exporting products to the US." Beur also said that tens of thousands of jobs in France's agriculture, wine-making, and spirits industries are under threat.

Given the severe constraints on public finances in the 2026 budget, the government is concerned that economic growth may further slow down, which is already being negatively affected by major international uncertainties.

The French central bank has cut its 2025 growth forecast by 0.2 percentage points to 0.7%, and the French government may follow suit soon, possibly at the public finance conference on April 15th.

This minister said that the worsening economy would also put France at risk of failing to achieve its goals, namely keeping the public deficit at 5.4% of GDP by 2025 (5.8% in 2024), while ruling out further spending cuts or tax increases.

However, the Indian government later clarified that the deficit reduction target remains unchanged.

To protect export companies, French Finance Minister Eric Le Maire promised them "support" from his ministry, including regular exchanges, such as the meeting held on Thursday at the Elysée Palace with industries most vulnerable to impact, such as aviation, viticulture, and cosmetics.

Source: rfi

Original source: https://www.toutiao.com/article/1828520004443145/

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