For months, French companies have supported the fallout of the trade war and tariff threats from the US as President Trump's “America First” policy ripples over. But over the past week, the French corporate world has been caught up in another type of Trump mischief.
In a brief, three-paragraph letter sent by the American Embassy in France to French companies, executives were told that President Trump's move to eliminate diversity, equity and inclusion policies would apply to businesses operating with the US government. It said they are giving five days to sign a form indicating they will follow.
The executive order Trump signed after he took office tells federal contractors not to engage in DEI. A letter to French companies said the order “applies to all US government suppliers and contractors, regardless of nationality and country in which it operates.”
“If you do not agree to sign this document, we appreciate it being forwarded to legal services if we can provide you with detailed reasons,” the letter states. According to the accompanying form, the company must certify it as “not running a program that promotes DEI.”
The notice sparked a sense in the French corporate world, drawing the response of a suspect from the French government.
“The practice reflects the values of the new US government. They are not ours,” the Ministry of Economy said in a statement late Friday. French economy minister Eric Lombard “will remind him of this to his counterpart within the US government,” the statement said.
It was not immediately clear how many companies received the letters and how enforceable it was. However, several members of the French Private Business Association, including French CAC-40 listed companies and dozens of other French companies, expressed disappointment at it during a meeting with French government officials this week.
Trump's de-quashing order has led to fear and confusion among American corporate leaders, leading companies such as Google, American law firms and several universities to roll back diversity goals. But the Trump administration's efforts to impose policies on the European-based workforce have been accompanied by resistance in places like Italy, which has long had strong labor laws in favour of workers' rights.
In France, companies have worked for many years to increase the presence of women, members of minority groups and employees with disabilities. In general, they broaden their labor to reflect the composition of French society.
Unlike the US, France's diversity policy officially prohibits racial considerations in employment. Still, French companies are actually working to increase employee diversity and communicate their efforts to shareholders. Additionally, companies with more than 250 employees are legally required to have more than 40% of women on the executive board.
A spokesman for the French Association of Private Businesses said the group is waiting for the government to make a “coordinated response” to the Trump administration's letter.
Katherine Porter contributed the report.
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