For several months, French companies have been preparing for the repercussions of trade disputes and tariff threats coming from the United States as the impact of President Trump’s “America First” agenda expands. However, last week, the French corporate landscape was shaken by a different kind of communication from Trump.
In a brief, three-paragraph letter from the American Embassy in France directed at French firms, executives were informed that President Trump’s decision to eliminate diversity, equity, and inclusion (D.E.I.) policies would affect any businesses engaging with the U.S. government. They were given five days to complete a form confirming their compliance.
A presidential order signed by Mr. Trump the day after his inauguration instructs federal contractors to refrain from participating in D.E.I., which the order refers to as “illegal discrimination.” The letter conveyed that this order “applies to all suppliers and contractors of the U.S. government, irrespective of their nationality or operational country.”
“If you choose not to sign this document, we kindly ask you to provide detailed reasons, which we will convey to our legal department,” the letter stated. The form included the requirement that companies must certify “that they do not operate any programs promoting D.E.I.”
This notification created a stir in the French business community and elicited a brief response from the French government.
“This practice represents the values of the new American administration, which are not aligned with ours,” stated the economy ministry on Friday. France’s economy minister, Eric Lombard, “will remind his counterparts within the American government of this,” the statement added.
It remains unclear just how many businesses received the letter or its enforceability. However, several members of the French Association of Private Enterprises, encompassing French CAC-40 listed companies and numerous other significant firms, voiced their concerns during a discussion with French government officials this week.
Mr. Trump’s orders to dismantle D.E.I. initiatives have instilled fear and uncertainty among corporate leaders in the U.S., prompting companies like Google, in addition to American law firms and certain universities, to retract diversity objectives. Nevertheless, the Trump administration’s attempts to impose its policies on European-based workforces have faced opposition in regions like Italy, where workers’ rights are strongly protected by established labor laws.
In France, businesses have been dedicated for years to enhancing the representation of women, minority groups, and disabled employees, generally striving to diversify their workforces to mirror the composition of French society.
In contrast to the United States, French diversity policies explicitly prohibit considering race in hiring processes. Nonetheless, French companies have actively worked to improve workforce diversity and share these efforts with shareholders. Furthermore, businesses with over 250 employees are legally obligated to ensure that more than 40 percent of their executive boards consist of women.
A spokesperson for the French Association of Private Enterprises indicated that the organization is awaiting a “coordinated response” from the government concerning the Trump administration’s letter.
Catherine Porter contributed reporting.
