French Trade Figures Send ‘Warning Signal’ to EU, Minister Says

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(Bloomberg) — France’s trade minister said the latest export data are setting off alarm bells as US President Donald Trump’s tariffs threaten the world economy.

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The amount of imported goods has jumped significantly and outpaced a slight increase in sales abroad, with the food-processing and pharmaceutical industries especially worrying, Laurent Saint-Martin said in response to new data Thursday.

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“Overall, the trade balance is sending us a real warning signal, especially after the deal reached between the EU and the US, which creates a new global context,” he told Le Monde newspaper in an interview.

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The former head of Business France, which promotes export growth and foreign investment, called on Europe to act to boost its competitiveness more quickly if the region doesn’t want to be left behind.

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Trump’s sweeping tariffs officially went into effect on Thursday, with the EU subjected to a 15% rate affecting around $320 billion of trade. He had previously threatened to impose a 50% duty.

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France was critical of the accord, with Prime Minister Francois Bayrou calling it “submission.” Still, it drew praise from several European leaders, including German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni, who said it was “sustainable.”

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Data earlier on Thursday showed France’s trade deficit worsened by €2.8 billion ($3.3 billion) in the second quarter, compared with the previous three months, reaching €22.9 billion.

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The Economy Ministry said there had been a slight decrease in French exports to the US since the introduction of additional trade tariffs in April. The trend appears to be negatively correlated to the level of duties, it said.

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At the same time, higher imports from China, Southeast Asia, Mexico and Canada raise the question of a possible redirection of those countries’ US exports, the ministry added.

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Risk to Investment

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Saint-Martin said US tariffs hadn’t yet “legibly translated” into the trade figures but said they are expected to slow the world economy, which risks putting the brakes on investment.

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“For France and Europe, this deal creates a double threat: a loss of exports to the US and weakened global growth,” he told Le Monde.

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He said the accord provides visibility for businesses but is neither good nor balanced, adding that “it’s not over yet.”

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“We’re confident that aerospace will be exempted from these duties and in the coming weeks we’ll try to secure additional exemptions,” Saint-Martin said.

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He pointed to the fact it’s not possible to relocate production of Cognac, Armagnac and Champagne to the US, as demanded by Trump in other industries. He added that the government would also do everything to protect strategic sectors such as chemicals and pharmaceutical products.

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—With assistance from Ainhoa Goyeneche, Harumi Ichikura and Joel Rinneby.

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