French President calls for suspension of European investments in the US

France’s President has called for a suspension of European investments in the U.S. in the wake of the Trump administration’s decision to drastically raise trade tariffs with most countries.

Emmanuel Macron convened a meeting at the Elysée Palace with French business leaders from the main industries affected by the increased import duties which he has denounced as “brutal and unfounded.”

He urged businesses to “suspend” their investments in the U.S., “until we have clarified things with the United States of America”.

Macron went on to ask: “What kind of signal would we be sending out when major European players are investing billions of euros in the US economy while at the same time, they (the U.S.) are playing hardball with us?”

Just last month French ocean shipping and logistics group CMA CGM announced a U$20 billion investment program in the U.S. over a four-year period spanning shipping, logistics, air freight and port handling which would support the “transformation” of the domestics supply chain and create around 10,000 jobs.

What’s more, in an interview with French business newspaper, Les Echos, which followed a meeting with President Trump in the Oval Office, CMA CGM chief Rodolphe Saade said the Marseille-based giant was also looking into the possibility of building mid-size vessels in the U.S., federal authorities having promised tax incentives in support of such activity.

In the interview, Saade also underlined that he was not in favor of customs barriers as there was nothing worse to free trade than imposing tariffs between different countries.

“However, having said that, if the decisions are made, we’ll adapt. But I believe that trade between nations is the best antidote to conflict and has been a key driver of global growth and consumer purchasing power.”

Asked about the taxes that Trump has threatened to implement on shipping lines with Chinese vessels in their fleets calling at U.S. ports and whether they risked wiping out CMA CGM’s profits on US routes, Saade replied:

“It’s too early to say, but the amounts involved are considerable. It would be a major issue for us if these regulations were implemented. An announcement has been made, but we don’t know if it will go through. As a businessman, I’m in favor of free enterprise and free trade, so that we can develop CMA CGM in all countries.”

CMA CGM generates around 25% of its turnover in the US.

Even though Saade is reported to have close ties with Macron, it remains to be seen whether he’s ready to risk not only Trump’s ire but also delaying the group’s strategy in a key market by putting the U$20 billion investment program on hold.

Approached by AJOT, no one at CMA CGM was available to comment on President Macron’s call to suspend investments in the US.

Nor is it clear whether President Macron can rally enough support among the European Union and its 27– member states to his position.

European Commission President Ursula von der Leyen described the U.S. trade tariffs as a major blow to the world economy and warned that the EU was prepared to respond with countermeasures if an agreement with Washington could not be reached.

Some observers expect the EU’s riposte to focus on the services sector and include the revocation of banking licenses, the cancellation of the U.S.’ IP rights and blocking access to government contracts. However, such measures would require a weighted majority of EU member states to agree which is far from certain.

Another European ocean shipping giant Denmark’s Maersk, also recently announced major investment in the U.S. Its APM Terminals unit and the Port Authority of New York and New Jersey (PNYNJ) have signed an agreement to extend the lease for APMT Elizabeth until December 2062.

The lease for APMT Elizabeth, the PANYNJ's second-largest container terminal, was initially scheduled to end in 2029 and will be extended by 33 years.

Within the framework of the agreement, APM Terminals is set to invest over $500 million to enhance cargo-handling capacity at its Elizabeth terminal. During the previous lease, APMT invested $200 million in modernization work.