Macron to EU: 'Put investments on hold' amid US tariff clash

The announcement of these tariffs sent European stock markets into a sharp decline on Thursday.

French President Emmanuel Macron has urged European businesses to halt planned investments in the United States in response to U.S. President Donald Trump’s imposition of massive tariffs on EU exports.

Speaking on Thursday at a meeting with impacted sectors and government representatives at the Élysée Palace, Macron emphasized the importance of delaying investments until the EU clarifies its position with the U.S. “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 remarks are seen as a bid to discourage French business leaders from engaging with Trump, particularly those considering cutting private deals outside the established EU trade framework. Notably, French shipping giant CMA CGM had announced a €20 billion investment in the U.S. earlier this month, and Bernard Arnault, the head of luxury goods giant LVMH, has indicated interest in increasing investment in the U.S., praising Trump’s economic policies.

The dispute escalated Wednesday when the Trump administration imposed 20 percent tariffs on all EU exports to the U.S., a move Macron described as “a brutal and unfounded decision.”

Macron stressed that this move validated France’s push for a tougher 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.

In addition to retaliatory tariffs, Macron suggested that Brussels could deploy its new anti-coercion instrument — designed to target countries like China — and consider actions against American tech giants. “Nothing is ruled out, all tools are on the table,” he said.

The announcement of these tariffs sent European stock markets into a sharp decline on Thursday. The Stoxx 600 index fell by 2.7%, with major global retail brands and companies with extensive supply chains taking a hit. German sportswear retailer Adidas saw a drop of 11%, while shipping giant Maersk, often viewed as a bellwether for global trade, saw a 9.5% decline. The Stoxx Autos index also dropped 3.9% as Trump’s 25% tariffs on imported vehicles took effect.

The banking sector saw a loss of 5.6%, while technology stocks were down by 4.5%. The only sector to see a gain was utilities, which rose by nearly 3%. In terms of individual stock performance, the UK’s FTSE 100 closed down 1.6%, while France’s CAC 40 and Germany’s DAX posted even steeper losses of 3.3% and 3.1%, respectively.

(With inputs from Reuters and CNBC)