French President Emmanuel Macron called on companies to pause investments in the U.S. on Thursday until Donald Trump provides clarity on his “harsh and unjustified” tariffs targeting Europe and other nations. His statement followed Trump’s decision to impose steep tariffs, including a 20% tax on imports from the European Union.

At a meeting with French companies, which was also attended by French ministers and Prime Minister Francois Bayrou, Macron stated, “Future investments, investments announced in the last weeks, should be suspended for a time for as long as the situation with the United States is not clarified.”

Macron predicted that Americans would become “weaker and poorer” following Trump’s tariff announcement, calling it “brutal and unfounded” and warning of its “massive impact” on the European economy. He urged Europe to respond collectively rather than taking unilateral action.

Reaffirming the French government’s stance, Macron stated that a “European response” would unfold in “two stages.” The first phase, expected in mid-April, would address existing U.S. tariffs on steel and aluminium. The second phase, planned for the end of April, would be a “more massive response to the tariffs announced,” following an assessment of affected sectors and coordination with EU member states.

After the meeting, Patrick Martin, head of the French employers’ federation Medef, emphasised that the situation was “very serious.”

He noted that everyone agreed on the changing global landscape: "The world is reorganising, trade relations are becoming extremely brutal, threats are accumulating, and the time has come more than ever to accelerate simplification and competitiveness at the European and French level.”

Backing Macron’s stance, the business group France Industrie, representing several major companies, suggested that French manufacturers impacted by U.S. tariffs should retaliate. Possible responses could include halting investment projects in the U.S.

“To negotiate from a position of strength, we have to be ready to use all the levers at our disposal,” stated Alexandre Saubot, the group’s president.

French Overseas Minister Manuel Valls criticised the U.S. decision to impose different tariffs on France’s overseas territories, calling it a “deeply political” move that reflects an “accumulation of inconsistencies, absurdities and incompetence.” Following Trump’s tariff announcement, the Paris stock market saw its most effective daily drop in two years, closing more than three per cent lower on Thursday. Economist Vincent Vicard from the Centre for Prospective Studies and International Information told AFP that Trump’s actions “blow up” the “basic rules of international trade”, but mentioned that the EU was well prepared to answer.

Vicard suggested that EU countries could limit imports of American goods and services, restrict market access for U.S. companies, or even suspend certain corporate property rights.

In 2023, French direct investments in the U.S. totalled $370 billion, making France the fifth-largest foreign investor in the country, according to the U.S. Bureau of Economic Analysis (BEA).

By comparison, U.S. direct investment in France amounted to $142 billion that same year, with a strong focus on the manufacturing sector, as noted by France’s treasury. According to BEA data, the American Chamber of Commerce in France notified AFP that over 4,200 subsidiaries of French companies operate in the U.S., employing around 741,000 people.