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Most affirmative action policies are illegal in France, but US warns French companies against using DEI policies

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France’s trade ministry condemned “unacceptable” US interference Saturday after the American embassy in Paris sent several French firms letters warning against using the diversity programmes known as “DEI”, a frequent Donald Trump target.

The letters, sent to French companies currently doing or looking to do business with the United States, included an attached questionnaire asking firms to certify that they “do not practice programmes to promote diversity, equity and inclusion”, or DEI.

The questionnaire, which was shared with AFP, added that such programmes “infringe on applicable federal anti-discrimination laws” in the United States, where Trump signed an order banning federal DEI programmes the day he returned to office for his second term as president.

France, already bristling at Trump’s moves to slap hefty tariffs on imports, hit back through the ministry of foreign trade.

“US interference in French companies’ inclusion policies is unacceptable, just like its unjustified tariff threats,” the ministry said.

“France and Europe will defend their companies, their consumers, but also their values.”

Designed to provide opportunities for Blacks, women and other historically excluded groups, DEI programmes have drawn the wrath of Trump and his followers, who say they are discriminatory and incompatible with meritocracy.

The letter, first published Friday by newspaper Le Figaro, told companies that Trump’s January 20 executive order against DEI programmes “also applies to all contractors and suppliers of the US government, regardless of nationality or country of operations”.

It gives them five days to fill out, sign and return the questionnaire.

Economy Minister Eric Lombard’s office said the letter “reflects the values of the new US government”.

“They are not ours,” it said. “The minister will remind his US counterparts of that.”

‘Attack on our sovereignty’

It was unclear how many companies got the letter.

The economy ministry estimated “a few dozen” had received it, but said it did not yet have a final figure.

The US embassy did not immediately respond to a request for comment.

As published in the press, the letter was not on US embassy letterhead.

“If companies received it in that format, it’s not an official communication, much less a diplomatic one,” Christopher Mesnooh, an American business lawyer based in Paris, told AFP.

The US government cannot force French companies to follow its laws, added Mesnooh, from law firm Fieldfisher.

“French companies won’t now be required to apply US labour law or federal law against affirmative action policies,” he said.

In fact, most affirmative action policies are illegal in France, which bans treatment based on origin, ethnic group or religion, though many large companies have sought to diversify their recruitment pools.

France does however require companies with more than 1,000 employees to promote equality for women under a 2021 law, with benchmarks such as having at least 30 percent women executives.

That means a French company that adheres to the requirements stipulated in the US letter could risk breaking the law in France.

The head of French business group CPME, Amir Reza-Tofighi, called the letter an “attack on the sovereignty” of France, and urged political and business leaders to “stand together” against it.

Gerard Re of French labour confederation CGT called on the government “to tell companies not to adopt any policy that hurts equality between men and women or the fight against racism”.

This story was originally featured on Fortune.com



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Trump’s tariff pause gives businesses some breathing room but they’re still frozen when it comes to hiring decisions

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Good morning!

After one of the most volatile mornings for Wall Street in recent memory, President Donald Trump announced a pause on much of his tariff policy yesterday. And although the business world’s response was overwhelmingly positive, labor economists say the pivot is only a temporary reprieve for an already-troubled hiring landscape.  

“It’s going to give a little bit of certainty to businesses in the short term,” Cory Stahle, an economist at Indeed’s Hiring Lab tells Fortune. But “even though this is a pause, there wasn’t necessarily a full backing down. So there still is some looming uncertainty out there.”

Trump previously announced massive levies on some of America’s largest trading partners in a sweeping policy shakeup that he dubbed “Liberation Day.” In a Wednesday social media post, however, he said those plans would be put on a 90-day hiatus, and instead put a blanket 10% tariffs on all U.S. trading partners. The exception is China, which has now been assigned tariffs of 125% up from an already-high 104%. 

To say the news was a boost to the markets is an understatement. The S&P 500 went up 9.5%, while the Dow jumped by 7.8% before trading closed for the day. Financiers like Bill Ackman, who previously warned that the tariffs would cause a “self-induced, economic nuclear winter,” were quick to celebrate the news, praising Trump and calling the policy change “brilliantly executed.” 

But not everyone was so enthusiastic. The market wil “likely go higher for a few days, but I think permanent damage has been done,” Jake Schurmeier, portfolio manager at Harbor Capital and a former member of the Federal Reserve Bank of New York’s Markets Group, told Fortune on Wednesday

Although the pause is certainly good news for businesses staring down the prospect of lower revenue and potential hiring pullbacks if not outright layoffs, Trump’s pivot has only delayed the dread that has already permeated corporate America. Many companies have been trapped in a holding pattern as they try to figure out how to navigate a series of major changes over the past few months, including a presidential election, and subsequent workplace-related executive orders. 

It’s true that topline unemployment numbers remain low, but they cover up some troubling truths: Many of the massive federal layoffs haven’t showed up in the data yet, and the fact that a significant portion of job seekers are taking more than six months to find a role. Hiring is also most often a long process, and savvy businesses aren’t just thinking one quarter ahead of time, says Stahl. 

“The labor market has been mostly paralyzed, mostly frozen,” he says. “It’s been a continued story of: What policies are going to happen from day to day? So I don’t think that this gives businesses a ton more certainty that they need to start going on a hiring spree.”

Azure Gilman
Azure.gilman@fortune.com

Brit Morse
brit.morse@fortune.com

This story was originally featured on Fortune.com



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Insurance company Meanwhile raises $40 million from Framework and Fulgur Ventures

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The Biden administration gave TSMC billions to build its semiconductors in the U.S., but Trump says he threatened 100% tariffs and got the company to double down

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  • President Trump said during an event Tuesday that chipmaker TSMC pledged an additional $100 billion to build semiconductors in the U.S. after he threatened the company with tariffs of up to 100%. The company had already pledged $65 billion to make chips in the U.S. and received a $6.6 billion subsidy under the Biden administration that Trump has criticized.

Chipmaker TSMC promised to make more semiconductors in the U.S. thanks in part to Biden era incentives, but Trump says the company doubled down after he threatened it with 100% tariffs.

President Trump, during a Republican National Congressional Committee event Tuesday, criticized former President Biden’s decision to award TSMC $6.6 billion in grants as part of the 2022 CHIPS and Science Act to support semiconductor factories in Phoenix. The move was finalized just before Biden’s term ended. TSMC pledged $65 billion in funding from TSMC.

In March, TSMC, in conjunction with Trump, announced an additional $100 billion investment to make chips in the U.S. and the president emphasized that the deal was closed without offering stimulus.

“All I did is say, ‘If you don’t build your plant here, you are going to pay a big tax— 25, maybe 50, maybe 75, maybe 100%,'” Trump said during the event.

TSMC declined to comment to Fortune.

Trump has previously criticized giving government subsidies to businesses even though he sought to bring TSMC to the country during his first administration. Since returning to the White House, the president has tried to scrap the $52.7 billion CHIPS Act, to the protest of some Republican senators whose states have benefited from the funding. 

“These chip companies are loaded. They give these companies billions of dollars to build a plant in the United States. They don’t build them in the US,” Trump said Tuesday.

On Wednesday, Trump announced a 90-day pause on the steep “Liberation Day” tariffs the president instituted last week, replacing them with a 10% base tariff on all countries except for China. 

Although there was an exemption for semiconductors, the now-paused tariffs put a 32% tax on Taiwan, where most of the world’s semiconductors are produced. Still, manufactured chips that are installed in electronics abroad are still subject to the tariffs that apply to the country from which they are exported.

Trump has previously threatened other companies, including manufacturer John Deere. On the campaign trail Trump said he would hit the manufacturer with 200% tariffs unless it stopped plans to move some of its production from the Midwest to Mexico. During his first administration, Trump went after General Motors, threatening to cut its federal subsidies after the company said it would close some of its U.S. plants.

This story was originally featured on Fortune.com



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