The trade deficit was stable compared to both the previous month and the year ago level. Coming in at minus 7.77 billion Euros compared to minus 7.69 billion in April and a gap of 7.69 billion a year ago.

Exports were 1.07 billion Euros less than they were in May of last year with imports were down by 992 billion.

Energy reported a surplus of 400 million euros with manufactured goods in deficit for 800 million euros. The main contributor to the gap was a 700 million euros deficit for capital goods, while consumer goods recorded a 100 million euros deficit.

Like other countries, France is waiting to see what the US will do regarding tariffs. The deadline for a deal is being extended to some countries until August 1. But the European Union negotiates as a block, so the administration will have to deal with the EU rather than individual countries.

The merchandise trade balance measures the difference between imports and exports of goods. The level of the international trade balance, as well as changes in exports and imports, indicate trends in foreign trade and can offer a guide to an economy's competitiveness.

Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect currency values in foreign exchange markets. Given the size of the French economy, the euro can be sensitive to changes in the trade balance. The bond market is also sensitive to the risk of importing inflation. This report gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.