France Faces Budget Deficit Challenges Amidst Tariff Tensions

Eric Lombard, France's Finance Minister, suggests a potential shift in France's deficit reduction plans due to U.S. tariffs on EU imports. He dismisses further spending cuts and tax hikes, stressing the need to wait for negotiation outcomes, highlighting potential economic impacts and a revised growth forecast.

Finance Minister Eric Lombard hinted on Friday at a possible deviation from France's budget deficit reduction target due to U.S. tariffs, dismissing further spending cuts and tax hikes as solutions.

Speaking to BFM TV, Lombard highlighted the uncertainty until negotiations with the U.S. on new tariffs unfold, as President Trump's recently announced 20% tariffs on EU imports could impact the French economy significantly.

Lombard emphasized that maintaining these tariffs would decrease revenue and GDP, potentially worsening the deficit, but stressed the importance of avoiding additional economic measures detrimental to the economy.

(With inputs from agencies.)