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France's GDP expected to dip by 0.5% amid 'outrageous' US tariffs: PM

  • By Al Mayadeen English
  • Source: News Websites
  • 5 Apr 2025 22:03
3 Min Read

French officials have examined the impact of Trump's 20% tariffs, detailing setbacks in unemployment, economic stability, and GDP growth.

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  • France's Prime Minister Francois Bayrou leaves the weekly cabinet meeting, Wednesday, March 19, 2025 at the Elysee Palace in Paris. (AP)
    France's Prime Minister Francois Bayrou leaves the weekly cabinet meeting, Wednesday, March 19, 2025 at the Elysee Palace in Paris. (AP)

France may experience a 0.5 percentage point decline in Gross Domestic Product (GDP) growth due to US President Donald Trump's tariff measures, Prime Minister Francois Bayrou warned in an interview published Saturday.

"Trump's policies could cost us more than 0.5% of our GDP," Bayrou said, according to excerpts from his interview with Le Parisien newspaper.

"The imposition of these outrageous tariffs will lead to a global crisis (...). The risk of job losses is significant, as is that of an economic slowdown," he added.

Following a conversation with British Prime Minister Keir Starmer, French President Emmanuel Macron stated earlier on Saturday that both countries had reaffirmed their commitment to "closely coordinate" their positions in tariff negotiations with Trump.

"A trade war is in no one’s interest. We must stand united and resolute to protect our citizens and our businesses," Macron said in a post on X.

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Macron urges national companies not to invest in US 

Previously, on Thursday, Macron urged national companies to halt any investments in the US until greater clarity emerges regarding the specifics of Trump's proposed tariffs, as the world prepares to go to a trade war with the US over its tariff bombardment policy.

Meanwhile, French Economy Minister Eric Lombard said on Friday that the European Union's retaliation to the newly-imposed 20% tariff by the United States on the bloc may not be limited to reciprocal duties on American imports.

"We are working on a response package that could indeed go beyond customs duties to bring the Americans to the negotiating table and reach a balanced agreement..." Lombard told RMC Radio on Friday, adding that the EU's response can be firm without mirroring the US approach, as tariffs on imports from the US could harm the bloc.

The minister called on French companies to demonstrate solidarity and patriotism in the face of the US measures while stressing that Europe must stand its ground against global powers "because we are now in a period of confrontation against the planet’s major blocs: the US, Russia ,and China. Europe has what it takes to rise to the occasion, but it requires effort."

Read more: WTO Chief warns of global trade contraction as US tariffs spark alarm

  • US tariffs
  • United States
  • economy
  • Emmanuel Macron
  • France
  • Donald Trump
  • European Union

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