The leader of France’s Medef business lobby group cautioned on Wednesday that extensive U.S. tariffs might adversely affect economic growth and potentially trigger a recession. He called on authorities to implement measures that would enhance the competitiveness of French businesses.
“The risk is that growth will stall and that we go into a recession,”
Patrick Martin told RTL radio when asked about the impact of U.S. tariffs on French businesses.
On Wednesday, U.S. President Donald Trump’s “reciprocal” tariffs came into force for multiple countries, featuring a substantial 104% duty on imports from China, intensifying his international trade conflict as he geared up for talks with several nations.
“We must very rapidly act to improve the competitiveness of French businesses… This means protecting consumption, notably not over-burdening taxpayers, households as well as businesses,”
Martin said.
In response to inquiries regarding Martin’s demand, Marc Ferracci, the French industry minister, stated on Franceinfo radio:
“We are addressing this in parliament, which involves discussing the possibility of lowering taxes, especially production taxes.”
Ferracci once again urged French companies to halt investments in the United States, citing the tensions between France, Europe, and Trump’s administration regarding tariffs.
“We are saying suspend your investments given this very complicated moment in time. We are currently in a situation of high confusion. Investments that had been foreseen have now been made uncertain,” Ferracci said.
Ferracci, who met with representatives from French industry late Tuesday, emphasized the importance of analyzing the potential effects of tariffs on sectors like aerospace, cosmetics, aeronautics, and luxury goods to fine-tune the European Union’s response. That response must be “firm and proportionate” to avoid an escalation that would hit jobs, he added.
