Global Leaders React to U.S. Tariffs with Investment Pauses
The White House has urged world leaders not to retaliate against the recent U.S. tariffs, but it appears that global leaders are not heeding this advice. In a significant move, French President Emmanuel Macron has called for French companies to pause their investments in the United States in response to these tariffs. This decision comes as a direct reaction to the U.S. imposing new tariffs, which have stirred international tensions.
Macron's call for a suspension of investments was echoed in various international news outlets, highlighting the growing friction between the U.S. and its allies over trade policies. The New York Times reported that other European leaders are also considering similar measures, indicating a broader trend of economic retaliation against the U.S. tariffs.
The White House's plea for restraint seems to be falling on deaf ears as countries assess the impact of the tariffs on their economies. This situation underscores the challenges the U.S. faces in maintaining its economic relationships amidst its aggressive trade policies.
Related issues news
What tariffs does the EU impose on the US?
The World Trade Organization says the EU's average tariff rate is 5.0%, while the Commission says the average tariff on goods traded between the EU and the U.S. is about 1% for both sides.
Does the EU have tariffs on the US?
The US has asserted that the EU currently applies blanket 5% tariffs on US imports. Another senior EU official said by contrast that average EU tariffs on exports from the US was 1.2% in 2023, and claimed that average tariffs applied by the US on EU imports reached 1.4%.
What is Trump's trade war?
On March 10, China imposed a 15% tariffs on American goods, including agricultural goods. Since February 2025, the Trump administration imposed a total of 54% tariffs on China, with the Chinese Government imposing 82% tariffs on the United States.
Are tariffs bad?
The wasteful effects of protectionism eventually lead to a substantial reduction in the efficiency with which labor is used, leading to a decline of about 0.9% of labor productivity after five years. Tariffs also lead to a small and marginally-significant increase in unemployment.
