Factory closures in France surge by 30%, blamed on Asian competition and tariffs

SighingCashier · 2026-03-29T18:19:55+00:00

The French Ministry of Finance announced on Sunday that approximately 160 factories are expected to close in 2025, an increase of 30% compared to 121 in 2024. The number of new factories also declined, with only about 103 opening last year, down from 115 in 2024.The Ministry pointed out that the deteriorating international environment has placed a heavy burden on the industry. Factory closures are mainly due to increased pressure from Asian competitors and the impact of U.S. tariffs, compounded by rising energy prices making the situation even worse.

SighingCashier

2026-03-29 18:19:55

French finance ministry data released Sunday shows that in 2025, about 160 factories are expected to shut down, up from 121 in 2024, an increase of nearly 30%. The number of newly opened factories also fell: last year saw only about 103 factories begin operations, down from 115 in 2024.

The ministry said that worsening international conditions have imposed a heavy burden on the industry. The closures are mainly due to increased pressure from competing Asian rivals, as well as the impact of U.S. tariffs, while higher energy prices have made matters worse.

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