France faces the recession fears of the Trump tariff, the President of France Midf warns
Patrick Martin, who leads the Lobby Group for the influential business in France, said on Wednesday that the new definitions could push the country to recession. The 65 -year -old French business officer is concerned about the country’s economy facing President Donald Trump’s market, which suffers from the identification tariff.
French companies must confront American export on steel, aluminum and other goods used in space, luxury goods and cosmetics. Martin asks the French government to enact strategies to help the competitiveness of French companies stay standing on his feet.
“The danger is that growth will stop and we go to recessionI told Martin Radio RTL. “We must act quickly to improve the competitiveness of French companies, which include consumption protection without installing taxpayers, families and companies“
The recession threats continue with a trade war for the European Union and the United States
Martin’s appeal to the French government comes against the background of friction between the United States and Europe on commercial policies. Some policymakers, such as French Minister of Industry Mark Verse, supported Martin’s concerns, which suggested helping to reduce the burden on companies by reducing production taxes.
Speaking to Francifo, Virchi asked French companies to think about suspending investments in the United States because of the trade conflict.
“The situation is very complicated, and the investments that were now safe as a questionFerracci added.
The President of France, Emmanuel Macron, also established Trump’s commercial policies, and photographed a “bad idea” that could increase the exacerbation of the already tense global economic relations. The country, along with other European Union countries, faces a 25 % tariff on steel and aluminum and a 20 % tariff for many products.
“We never wanted to chaos or the higher definitions“Macron He said During his visit to Egypt. “We believe it is a bad response to the trade deficit and we will defend our economy against these definitions.”
Macron repeated that France can eventually respond to American definitions with revenge, but the focus of its administration is to make reforms to increase competitiveness rather than engage in tariff marriage.
The Bank of France says the estimation of the growth of the first quarter, the consequences of the tariff are unclear
In other developments, the Bank of France raised its appreciation to growth in the first quarter on Monday, and reported 0.2 % between January and March. However, the Central Bank stated that it is unclear how long the United States affects the French economy in the long run.
According to the Bank of France, the manufacturing sector in the European country procedure Better than expected in March, and some industries, including luxury goods and alcoholic beverages, have managed the front delivery operations to America in anticipation of definitions.
However, the Central Bank admitted that the definitions have increased risk perceptions in all sectors, as the industries began preparing for financial effects.
“I must insist that this shot of the first quarter data does not predict what will happen in the second quarter,Olivier Garnier, an economist at the Bank of France, said. “The uncertainty is real, and it will be more likely to increase with the effects of tariffs more clearly“
Inflation holds a constant, the growth of the euro stops
The inflation rate in France remained unchanged for the largest part, with the annual average continued by 0.8 %. It faced some decline from high service and food prices, especially for fresh products, which were somewhat compensated by lower energy prices.
The inflation rate in the European Union, which tracks price changes across member states, is also fixed at 0.9 %.
The bloc was actively looking for ways to face the impact of American definitions, with the European Commission suggestion Trump’s “zero” tariff deal. Sources from Washington said that the White House rejected this offer, so it is said that the European Union is preparing to slap the goods of America at a rate of 25 %.
European stock markets achieved great success in the trading session on Wednesday morning, with Stoxx 600 index 3.4 % decrease, wipe about 2 % of the gains from the previous day. Losses are spread across several sectors. The shares of pharmaceutical companies Novo Nordisk, Novartis and Estzinica decreased by 4.2 %, 7.3 %, and 5.3 %, respectively.
On the currency front, commercial economy data appears Euro/dollars The exchange rate increased by 0.0071, or 0.65 %, to reach 1.1032, which is a slight increase in the level of the end of the end of the yesterday of 1.0961.
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