For months, French businesses have been bracing for the fallout of trade wars and tariff threats from the United States as the effects of President Trump’s “America First” policies ripple out. But this past week, the French corporate world was roiled by another type of Trump missive.
In a terse three-paragraph letter sent by the American Embassy in France to French companies, executives were told that President Trump’s moves to eliminate diversity, equity and inclusion policies would apply to any firm doing business with the U.S. government. It said it was giving them five days to sign a form indicating that they would comply.
An executive order that Mr. Trump signed the day after taking office instructs federal contractors not to engage in D.E.I., which the order described as “illegal discrimination.” The letter to French businesses said the order “applies to all suppliers and contractors of the U.S. government, regardless of their nationality and the country in which they operate.”
“If you do not agree to sign this document, we would appreciate it if you could provide detailed reasons, which we will forward to our legal services,” the letter said. The accompanying form added that companies must certify “that they do not operate any programs promoting D.E.I.”
The notice caused a sensation in the French corporate world and drew a curt reply from the French government.
“This practice reflects the values of the new American government. They are not ours,” the economy ministry said in a statement late Friday. France’s economy minister, Eric Lombard, “will remind his counterparts within the American government of this,” the statement said.
It was not immediately clear how many companies received the letter or how enforceable it was. But several members of the French Association of Private Enterprises, which include French CAC-40 listed companies and dozens of other major French firms, expressed their dismay over it during a meeting with French government officials this week.
Mr. Trump’s D.E.I.-quashing orders have sown fear and confusion among corporate leaders in the United States and led companies such as Google, as well as American law firms and some universities, to roll back diversity goals. But the Trump administration’s efforts to impose its policies on Europe-based workforces have been met with resistance in places like Italy that have long had strong labor laws favoring workers’ rights.
In France, companies have worked for years to increase the presence of women, members of minority groups and employees with disabilities, generally broadening their workforces to reflect the makeup of French society.
Unlike in the United States, French diversity policies officially bar the consideration of race in hiring. Even so, French companies have moved in practice to increase employee diversity and communicate their efforts to shareholders. In addition, companies with more than 250 employees are legally required to have more than 40 percent of women on their executive boards.
A spokesperson for the French Association of Private Enterprises said the group was waiting for the government to make a “coordinated response” to the Trump administration’s letter.
Catherine Porter contributed reporting.
