French businesses have long been preparing for the potential fallout of trade wars and U.S. tariff threats under President Trump’s “America First” policies. However, last week, another type of message from Trump shook the French corporate world. The American Embassy in France sent a brief letter to French companies, informing them that President Trump’s decision to dismantle diversity, equity, and inclusion (DEI) policies would apply to any firm doing business with the U.S. government. Companies were given five days to sign a form confirming their compliance.
An executive order signed by Trump immediately after taking office requires federal contractors to avoid D.E.I., which the order deems “illegal discrimination.” The letter to French businesses emphasized that this order applies to all U.S. government suppliers and contractors, regardless of their nationality or country of operation. If companies refuse to sign the document, they are invited to provide detailed reasons, which will be forwarded to the embassy’s legal services. The accompanying form requires companies to certify that they do not operate any programs promoting D.E.I.
The notice has caused a stir in the French business community and evoked a sharp response from the French government. The economy ministry stated that this practice reflects the values of the new American government, which are not shared in France. The French economy minister, Eric Lombard, will communicate this to his American counterparts. The number of companies that received the letter remains unclear, but several members of the French Association of Private Enterprises, including major French firms listed on the CAC-40, expressed their concerns during a meeting with French government officials this week.
Mr. Trump’s orders to eliminate D.E.I. have already instilled fear and confusion among corporate leaders in the U.S., leading companies such as Google to scale back their diversity goals. However, the Trump administration’s attempts to impose these policies on Europe-based workforces have faced resistance in countries with strong labor laws favoring workers’ rights.
In France, companies have made significant efforts to increase the diversity of their workforces in recent years, including women, members of minority groups, and employees with disabilities. Although French diversity policies officially prohibit consideration of race in hiring, companies have taken practical steps to increase employee diversity and have been legally required to have a certain percentage of women on their executive boards.
The French Association of Private Enterprises is awaiting a coordinated response from the French government to the Trump administration’s letter.
Source: https://www.nytimes.com/2025/03/29/business/france-trump-diversity-inclusion.html
