In a significant move that has raised eyebrows across the Atlantic, the administration of President Donald Trump is intensifying its campaign against affirmative action policies, now targeting French companies engaged with the U.S. federal government. On March 26, 2025, Trump signed an executive order in the Oval Office, which has been met with swift action from the U.S. Embassy in France.
According to a report by Les Echos, dozens of large French companies and law firms received a formal letter from the U.S. Embassy demanding that they renounce all forms of affirmative action if they wish to continue bidding for federal contracts. The letter references Decree 14.173, which aims to end illegal discrimination and restore merit-based professional opportunities, a directive that applies to all suppliers and service providers to the U.S. government, regardless of their nationality.
The letter also includes a "certificate of compliance with American federal anti-discrimination law," which companies are required to sign within five days. This document obligates them to declare that they do not operate any programs promoting diversity, equity, and inclusion (DEI). Failure to comply could result in losing access to federal contracts, a significant concern for many firms.
French Economy Minister Éric Lombard expressed his dismay over the U.S. government's stance, stating that this practice reflects values that do not align with those of France. Lombard's office emphasized that the minister would communicate these concerns to his American counterparts. The letter has sparked a wave of anxiety among French businesses, especially those in sectors like luxury, telecommunications, and energy, which are heavily reliant on U.S. contracts.
"This practice reflects the values of the new American government. These are not ours," said a spokesperson from Lombard's office, highlighting the ideological clash between the two nations. The letter has been characterized as a form of extraterritoriality, where the U.S. seeks to impose its domestic policies on foreign entities.
The decree signed by Trump comes in the wake of a Supreme Court ruling in July 2023 that effectively ended affirmative action in U.S. universities. Since returning to the White House, Trump has made the dismantling of DEI initiatives a key focus of his administration, arguing that such policies constitute a form of "reverse discrimination" and advocating for a strict meritocracy.
In the U.S., many companies have already adjusted their diversity policies in response to Trump's directives. Major corporations like Amazon, Meta, Walmart, and Coca-Cola have made significant cuts to their DEI programs. Now, the focus has shifted to Europe, with Trump’s administration sending a clear message to French firms that compliance with U.S. policies is non-negotiable if they wish to participate in U.S. federal contracts.
Some industry leaders have expressed concern over the potential implications of this directive. One CEO noted, "If we do not accept to sign this document, we risk being barred from bidding on federal contracts," highlighting the pressure these companies face to conform to U.S. standards.
Moreover, the letter has raised questions about the legality of imposing such requirements on foreign companies. In France, laws prohibit the use of ethnic statistics in hiring and forbid discrimination based on ethnicity, gender, sexual orientation, or age. Exceptions exist, such as mandates for gender representation in corporate boards and the inclusion of disabled workers in the workforce. However, companies may find themselves in a precarious position if they are forced to abandon these practices to comply with U.S. law.
As the situation unfolds, it remains to be seen how French companies will respond to this ultimatum. Some may choose to modify their internal policies without completely abandoning their diversity initiatives, while others, particularly those heavily dependent on U.S. contracts, may feel compelled to make significant concessions.
This latest development marks a new chapter in transatlantic relations, which have already been strained by various economic disputes, including tariffs on European automobiles and sanctions on steel imports. The Trump administration's approach to diversity policies is just one of many fronts in the ongoing economic tug-of-war between the U.S. and Europe.
In summary, Trump's administration is not just waging a war on affirmative action domestically; it is also seeking to export its ideology abroad, challenging the very foundations of diversity and inclusion policies that many European companies have embraced. As the deadline for compliance looms, the fallout from this directive could reshape the landscape of international business relations.
