France Faces 0.5% GDP Hit from Trump’s Tariff Plans, Warns PM Bayrou

France could experience a 0.5 percentage point drop in GDP growth due to U.S. President Donald Trump’s new tariff policies, Prime Minister Francois Bayrou warned in an interview with Le Parisien on Saturday. Bayrou criticized the tariffs as “outrageous,” warning they could spark a global economic crisis and lead to widespread job losses and a significant economic slowdown.

Trump’s proposed trade measures, unveiled Wednesday, would impose a sweeping 20% tariff on goods from France and other European Union countries. The move has raised fears across Europe about its potential to derail economic recovery and strain international trade relations.

Bayrou emphasized the long-term risks, stating, “Trump’s policies could cost us more than 0.5% of our GDP,” and urged coordinated resistance to prevent severe economic fallout. His comments reflect growing concern among European leaders as protectionist measures from Washington escalate.

French President Emmanuel Macron echoed Bayrou’s concerns, announcing earlier on Saturday that he had spoken with UK Prime Minister Keir Starmer. The two leaders reaffirmed their commitment to closely coordinate responses to the tariffs. Macron posted on X, “A trade war is in no one’s interest. We must stand united and resolute to protect our citizens and our businesses.”

The EU is currently evaluating potential retaliatory measures and exploring diplomatic channels to address the dispute. Analysts warn that prolonged trade tensions between the U.S. and Europe could disrupt supply chains and increase costs for consumers and businesses on both sides of the Atlantic.

As global markets react to the potential fallout, economists urge caution, stressing the need for constructive dialogue to avoid further economic damage in an already uncertain global landscape.