Prime Minister Edouard Philippe on Friday evening met a delegation of self-described "moderate" yellow vests who have urged people not to join the protests.
The climbdown over the fuel tax - meant to help France move to a greener economy - marks a major shift for Mr Macron, who has previously vowed not to be swayed, like previous presidents, by large street protests.
According to French news channel BFMTV, the total number of arrests has risen to 320.
Nearly 1,000 people have been taken into custody nationwide.
He also said there are now hooligans among the demonstrators, but they are not the core.
Department stores were also closed due to the risk of looting on what would normally be a busy shopping weekend less than three weeks before Christmas.
Shop windows on the othr side of the road are completely shattered.
Much of the city will effectively be on lockdown.
Almost 90,000 police and gendarmes have been mobilised across the country, around 8,000 of them in the capital, officials have said, alongside a dozen VBRG armoured vehicles.
The US embassy issued a warning to Americans in Paris to "keep a low profile and avoid crowds", while Belgium, Portugal and the Czech Republic advised citizens to postpone any planned visits.
Unimpressed, the "yellow vests" call for a new protest on December 1 on the Champs-Elysees.
In a warning of impending violence, an MP for Macron's party, Benoit Potterie, received a bullet in the mail on Friday with the words: "Next time it will be between your eyes".
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The Élysée Palace, seat of President Emmanuel Macron, announced to French media they are expecting "great violence" on Saturday as Yellow Vest protestors have announced "Act IV" of their almost four-week-long protest against the Macron regime that was initially sparked by a rise in fuel taxes, franceinfo reports. Macron agreed to abandon the fuel tax hike, but that hasn't defused the anger, embodied by the fluorescent safety vests that French motorists are required to keep in their cars. He must know that the moment will be thrown away if he does not move in quickly now with ideas that go some way to satisfying the more moderate of the yellow vests.
Right from the start, the Gilets Jaunes - who take their name from the high-visibility jackets that drivers must wear if they step outside the auto on the roadside - were a symptom of a wider resistance to the presidency of Emmanuel Macron.
France's President Emmanuel Macron delivers a speech during a meeting with French mayors at the Elysee Palace, in Paris, Nov. 21, 2018.
The French government is relieved that its worst forebodings about the protests did not come to pass.
And the hardline CGT union, hoping to capitalise on the movement, has called for rail and Metro strikes next Friday to demand immediate wage and pension increases.
Castaner estimated Friday that 10,000 people were taking part nationwide.
"10,000 is not the people, it's not France", he argued, despite polls showing the protesters enjoying strong public support.
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