In recent months, French businesses have been preparing for potential impacts from trade wars and tariff threats stemming from the United States, particularly as President Trump’s “America First” policies take effect. However, a new development arose last week following a letter from the American Embassy in France.
The letter, which was brief and consisted of three paragraphs, informed French companies that President Trump’s initiative to eliminate diversity, equity, and inclusion (D.E.I.) policies would extend to any firm engaged with the U.S. government. Companies were given a five-day deadline to sign a compliance form.
According to an executive order signed by Mr. Trump shortly after taking office, federal contractors are prohibited from participating in D.E.I. initiatives, which the order categorizes as “illegal discrimination.” The embassy letter clarified that this directive applies to all suppliers and contractors of the U.S. government, irrespective of nationality or operational country.
The letter further requested that companies refusing to sign the document provide detailed reasons for their decision, which would be forwarded to legal services. Additionally, the compliance form required companies to certify that they do not promote any D.E.I. programs.
This notice has sparked significant concern within the French corporate sector and prompted a swift response from the French government. The economy ministry stated, “This practice reflects the values of the new American government. They are not ours,” and indicated that Economy Minister Eric Lombard would communicate this sentiment to American officials.
It remains unclear how many companies received the embassy letter or the enforceability of its demands. Nonetheless, several members of the French Association of Private Enterprises, which includes major French corporations, expressed their discontent during discussions with government officials this week.
Trump’s policies aimed at dismantling D.E.I. initiatives have created anxiety among corporate leaders in the United States, leading firms like Google and various law schools to retract diversity objectives. However, such efforts to impose these policies on European-based workforces have faced resistance, particularly in countries like Italy with strong labor protections.
In France, businesses have invested years into enhancing diversity within their workforces, aiming to better reflect the demographic makeup of society. Unlike the United States, French diversity policies officially prohibit the consideration of race in hiring; however, companies have actively worked to improve employee diversity and communicate these efforts to stakeholders. Additionally, firms with over 250 employees are legally mandated to ensure that women constitute more than 40 percent of their executive boards.
A spokesperson for the French Association of Private Enterprises indicated that the organization is awaiting a “coordinated response” from the government regarding the Trump administration’s letter.