French President Emmanuel Macron urged European companies to suspend and halt any planned investments in the US, at least until they get a clearer economic vision of what is going on and its forthcoming consequences.
Macron’s announcement came on Thursday, April 3, after US President Donald Trump announced on April 2 that he was imposing global tariffs on American imports, and Europe isn’t off the hook.
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Investments will be suspended
“Investments to come or investments announced in recent weeks should be suspended until things are clarified with the United States,” Macron said during a meeting with French industry representatives, according to a France24 report.
The tariffs wave came as a surprise
“What would be the message if big European actors invest billions of euros in the US economy at the very moment they are hitting us?” was the question Macron asked during the meeting. He even described Trump’s move as “brutal and unfounded.”
What Trump’s move means
Trump’s move on Wednesday meant that a 10 percent tariff on most US imports will be imposed, with additional taxes on trading partners who have a higher trade deficit with the US.
In other words, this raised the tariffs to 20 percent on the European Union and to 54 percent on China.
The tariffs will impact all parties involved
Macron said that Trump’s tariff announcement will leave Americans “weaker and poorer.” Furthermore, these announcements will have a “massive impact” on the European economy.
The French president hasn’t ruled out any response to Trump’s tariffs yet.
Macron’s announcement came after companies planned to invest
French shipping firm CMA CGM announced weeks ago that it plans to invest $20 billion in the US to build shipping logistics and terminals. The plan had Trump’s approval.
Moreover, French electrical equipment supplier Schneider Electric expressed its plans in late March to invest $700 million in the US to support US energy infrastructure.
What is the fate of these investments?
Neither CMA CGM nor Schneider Electric responded to requests for comment on Macron’s proposal, and Macron hasn’t eliminated any possibility yet.
Macron suggested, however, the use of the anti-coercion mechanism, an EU instrument that aims to protect the Union and its members when it comes down to their interests and sovereign choices.
