French President Emmanuel Macron has appealed to European companies to suspend impending investments in America as a backlash against U.S. President Donald Trump’s recent imposition of unprecedented tariffs on EU exports.
Macron Calls for Investment Freeze
On Thursday, in a meeting with affected industries and government officials at the Élysée Palace. French President Macron stressed how postponing investment until the EU gets its strategy right with America is crucial.
“It is important that future investments, the investments announced over the last few weeks, should be put on hold for some time until we have clarified things with the United States of America,” Macron said.
“What message would we send by having major European players investing billions of euros in the American economy at a time when [the U.S.] are hitting us?” Macron continued, calling for “collective solidarity” among EU nations.
Macron’s comments are interpreted as an attempt to deter French business leaders from dealing with Trump. Especially those leaders who were contemplating making private deals outside the EU trade structure.
European Businesses Caught in the Crossfire
Interestingly, French shipping behemoth CMA CGM had already announced a €20 billion investment in the U.S. this month. While Bernard Arnault, CEO of luxury goods giant LVMH, has expressed interest in raising investment in the U.S., lauding Trump’s economic policies.
The conflict grew more intense Wednesday when the Trump administration imposed 20 percent tariffs on all EU goods coming to the U.S., which Macron called “a brutal and unfounded decision.”
Macron Pushes for Stronger EU Trade Policies
Macron emphasized that this action justified France’s calling for a harder trade policy. “We need to continue to accelerate at the European level with an agenda of trade protection,” he said, pointing to the EU’s duties on Chinese vehicles as an example of how the bloc can apply pressure on economic rivals.
“We are not naïve, we are going to protect ourselves,” Macron added, referring to the ongoing trade war with the U.S.
Alongside retaliatory tariffs, Macron indicated Brussels could invoke its new anti-coercion tool aimed at nations such as China and take action against American technology giants. “Nothing is ruled out, all tools are on the table,” he said.
Economic Fallout in Europe
The news of these tariffs pushed European shares sharply lower on Thursday. The Stoxx 600 index declined by 2.7%, with large global retail chains and firms with complex supply chains losing ground. German sportswear chain Adidas declined by 11%, while shipping giant Maersk, usually considered a barometer of world trade, fell 9.5%. The Stoxx Autos index also fell 3.9% as Trump’s 25% tariffs on foreign cars came into effect.
The banking sector fell by 5.6%, with technology stocks down 4.5%. The only sector that registered a gain was utilities, which rose by almost 3%. As for the performance of individual stocks, the UK’s FTSE 100 closed off 1.6%, with France’s CAC 40 and Germany’s DAX recording even more drastic falls of 3.3% and 3.1%, respectively.
