The French trade deficit hit $43bn in the first half of the year, up $4.4 bn from the second half of the 2024, according to figures released by French customs on the 7th.
French imports rose 1.9 per cent year-on-year in the first half of the year, while exports rose 0.7 per cent, the figures showed, with import growth outpacing exports as the main reason for the widening trade deficit. France’s trade deficit hit $22.9 bn in the second quarter alone, up $2.8 bn from the first quarter. This was mainly due to a decline in the value of exports of electricity, aviation products and ships, and an increase in the value of imports of pharmaceutical products to“Record highs”.
Laurent Saint-martin, the French minister in charge of foreign trade, told le monde that the widening trade deficit was a warning signal to the French, this is particularly true with the new trade deal between the EU and the US. He called on France and Europe to take action to boost competitiveness and“Pick up the pace” to avoid falling behind.
He also said us tariffs would have multiple adverse effects. First, these tariffs would push up prices in the US, where consumers would bear the brunt, and second, they could lead to a slowdown in global growth. “For France and Europe, this [ us-eu trade deal ] poses a double threat-lower exports to the US and a global economic slowdown.”