For months, businesses across France have been on edge, anticipating the impact of trade tensions and tariff threats emanating from the United States as President Trump’s “America First” policies began to unfold. However, this past week, a different kind of message from Trump turned the French corporate scene upside down.
A succinct letter, only three paragraphs long, was dispatched by the U.S. Embassy in France to several French firms. It informed executives that the President’s recent initiatives to dismantle diversity, equity, and inclusion (DEI) policies would extend to any company working with the U.S. government. With a deadline of just five days, companies were urged to sign a form affirming their compliance with this directive.
This executive order, which Trump signed the day after assuming office, directs federal contractors to abstain from engaging in DEI, labeling it as “illegal discrimination.” The letter stressed that this order “applies to all suppliers and contractors of the U.S. government, irrespective of their nationality or where they operate.”
“If you choose not to sign this document, we’re requesting a detailed explanation, which we will forward to our legal team,” the letter mentioned. Accompanying the letter was a form mandating companies to confirm “that they do not operate any programs promoting DEI.”
The French corporate sector was taken aback by this message, prompting a brisk response from the French government.
In an official statement late Friday, the Ministry of Economy stated, “This practice reflects the values of the new American government. They are not ours.” Economy Minister Eric Lombard plans to remind his American counterparts of this stance, the statement noted.
It wasn’t immediately clear how many firms received the letter or the enforceability of this order. Still, the letter stirred discontent among members of the French Association of Private Enterprises — which includes CAC-40 listed companies and several significant French businesses — during a meeting with French governmental officials this week.
Trump’s orders to dismantle DEI have already instilled concern and uncertainty amongst corporate leaders in the U.S., leading companies such as Google, alongside various American law firms and some universities, to scale back their diversity initiatives. However, attempts by the Trump administration to enforce these policies across Europe have faced stern opposition, especially in countries like Italy that have longstanding worker-friendly labor laws.
In France, organizations have made substantial strides to incorporate more women, minorities, and disabled individuals into their workforce, thereby making them more reflective of the broader populace.
French diversity policies formally prohibit considering race during hiring processes, which contrasts with the approach in the United States. Nonetheless, French companies have been proactive in promoting workplace diversity and communicating these efforts to stakeholders. Moreover, any company with more than 250 employees is legally obliged to ensure women hold over 40% of positions on executive boards.
A representative from the French Association of Private Enterprises commented that they are awaiting a “coordinated response” from the government regarding the letter from the Trump administration.
Catherine Porter also contributed reporting.
