In a bold but predictable move, French President Emmanuel Macron is urging French and European companies to halt their investments in the United States. This call to action follows President Donald J. Trump’s decisive implementation of a 20% tariff on European Union imports.
As Trump’s “Liberation Day” tariffs impact 49 countries globally, leaders worldwide are split in their responses. Some are wisely negotiating and reducing their duties, while others, like Macron, are capitalizing on the situation for political gain. This distraction tactic aims to divert attention from France’s internal challenges.
Macron is once again in the spotlight, attempting to shift focus from France’s economic woes. He is calling for a pause on investments in the US, as he gears up for a meeting with industry representatives affected by the tariffs.
Bloomberg reported:
“It makes little sense for firms to invest there while the US hits out against Europe, Macron said, speaking ahead of a meeting with representatives of industry groups affected by tariffs.
‘What would the message be of having big European players that invest billions in the American economy at the same time they are hitting us’, Macron said. ‘We must have collective solidarity’.”
The 20% tariff is slated to take effect on April 9. President Trump highlighted companies like the French maritime giant CMA CGM SA and carmaker Stellantis NV, which have benefited from investing in the robust US market. Recently, CMA CGM announced a $20 billion investment to enhance maritime infrastructure in America.
Meanwhile, Macron’s spokesperson revealed plans for retaliation against US tech firms and the services sector, signaling a potential escalation in trade tensions.
Macron emphasized the need for a robust EU response, potentially leveraging the EU’s anti-coercion tool to target US digital services and financial mechanisms. This tool is Europe’s strongest trade weapon, designed to counteract coercive economic measures by other nations.
