Last Updated on March 29, 2025 by Bertrand Clarke

In a diplomatic clash that has intensified transatlantic tensions, French officials are pushing back against what they describe as “unacceptable” American interference after the Trump administration sent letters to French companies demanding they certify compliance with a U.S. executive order banning diversity, equity, and inclusion (DEI) initiatives.

The controversy erupted after numerous French businesses holding or seeking U.S. government contracts received communications from the American embassy in Paris containing a questionnaire requiring them to confirm they “do not practice programs to promote diversity, equity, and inclusion.”

According to documentation published by French newspaper Le Figaro, the letters stated that “Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-based Opportunities, signed by President Trump, applies to all suppliers and service providers of the US Government, regardless of their nationality and the country in which they operate.”

Recipients were instructed to complete and return the English-language document within five days or provide detailed explanations for non-compliance, which would then be forwarded to U.S. legal services for review.

The French government’s response was swift and unequivocal. The Ministry of Foreign Trade issued a statement declaring, “US interference in French companies’ inclusion policies is unacceptable, just like its unjustified tariff threats. France and Europe will defend their companies and their consumers but also their values.”

Economy Minister Eric Lombard’s office added that while the letter “reflects the values of the new US government,” they “are not ours” and pledged to communicate this directly to American counterparts.

Legal and Diplomatic Complications

This unusual demand places many French firms in a potential legal dilemma. France’s own legal framework differs significantly from the new U.S. position on diversity initiatives.

While France generally prohibits policies explicitly based on ethnic or religious criteria, it does mandate gender equality measures. A 2021 French law requires companies with more than 1,000 employees to promote equality for women, including having at least 30 percent women in executive positions.

This creates a paradoxical situation where complying with the U.S. demand could potentially violate French regulations.

Christopher Mesnooh, an American business lawyer based in Paris with law firm Fieldfisher, noted that the U.S. government cannot legally compel French companies to follow American laws. “French companies won’t now be required to apply US labour law or federal law against affirmative action policies,” he explained.

Mesnooh also pointed out procedural irregularities, noting that the published letter lacked official U.S. embassy letterhead. “If companies received it in that format, it’s not an official communication, much less a diplomatic one,” he told AFP.

Broader Context of Trade Tensions

This controversy emerges against a backdrop of escalating economic friction between the United States and Europe. The Trump administration has recently threatened significant tariffs on European imports, creating additional anxiety within French business circles.

Amir Reza-Tofighi, head of French business group CPME, characterized the letter as an “attack on the sovereignty” of France and called for solidarity among political and business leaders in response.

Labor organizations have also weighed in, with Gerard Re of French labor confederation CGT urging the government “to tell companies not to adopt any policy that hurts equality between men and women or the fight against racism.”

The French Ministry of Economy estimates that “a few dozen” companies have received these letters, though the exact number remains unclear. The U.S. embassy in Paris has not yet responded to requests for comment on the situation.

Cultural Divide on Diversity Approaches

This diplomatic row highlights fundamental differences in how the United States and France approach issues of diversity and inclusion. While DEI programs in the United States have traditionally aimed to provide opportunities for historically marginalized groups, France has maintained a different philosophical approach to social equality.

French republican values emphasize universalism and officially reject policies that differentiate citizens based on ethnic or religious backgrounds. However, many large French companies have independently developed initiatives to diversify their recruitment pools while remaining within the bounds of French law.

“This situation exemplifies the complex interplay between national sovereignty and international business relationships,” explains Dr. Marie Fontaine, professor of international relations at Sciences Po Paris. “French companies with significant American contracts now find themselves caught between competing legal and cultural frameworks.”

French multinationals with substantial U.S. operations face particularly difficult decisions. Complying with the American directive could alienate domestic stakeholders and potentially run afoul of French regulations, while non-compliance might jeopardize valuable U.S. contracts.

Broader Implications for Transatlantic Relations

Policy analysts suggest this controversy could have far-reaching implications beyond the immediate issue of DEI programs. “We’re witnessing a fundamental shift in how the U.S. approaches its relationship with traditional European allies,” notes Jean-Claude Beauvoir, a senior fellow at the European Council on Foreign Relations.

“This directive represents an unprecedented attempt to extend U.S. domestic policy priorities into the internal operations of foreign companies,” Beauvoir added. “It challenges not just corporate policies but core European values regarding workplace equality.”

European Union officials in Brussels are monitoring the situation closely, with some suggesting this could trigger a coordinated EU response if the pressure on French companies continues or expands to firms in other member states.

As this situation unfolds, affected French companies are consulting with legal experts while awaiting further guidance from the French government. Many business leaders express hope for a diplomatic resolution that respects both national sovereignty and the complex realities of operating in a global marketplace.

The controversy underscores the ongoing challenges in U.S.-European relations as both sides navigate significant policy differences while attempting to maintain crucial economic partnerships during a period of increasing global uncertainty.