France's Key Exports to the US Face New Trade Barriers Under Trump Tariffs



As global trade tensions escalate, France finds itself caught in the crossfire of new protectionist measures. The recent 20% tariffs imposed by the Trump administration on all EU imports - including €47 billion worth of French goods - threaten to disrupt longstanding trade relationships and impact key industries.

## **France's Trade Relationship with the US at a Glance**
- **4th largest export market** for France (after Germany, Italy & Belgium)
- **€47 billion** in French exports to US (2024)
- **Trade deficit**: France imports more from US (€52.7B) than it exports
- Less dependent than Germany (3.8% of GDP vs France's 1.6%)

## **Most Vulnerable French Export Sectors**

### **1. Aerospace (€9B exports)**
- **Airbus** faces challenges despite US production in Alabama
- **Dassault Aviation** (Falcon jets) derives 30-50% sales from US
- Industry employs **275,000 Americans** through supply chain

### **2. Luxury Goods (€4.5B)**
- LVMH, Hermès, and perfume houses face pricing pressures
- Luxury firms may **raise US prices** to offset tariffs
- Some protection from local US manufacturing

### **3. Pharmaceuticals (€3.6B)**
- **Exempted** from new tariffs (temporary relief)
- Remains critical export category

### **4. Wine & Spirits (€4B combined)**
- **Cognac** (€1.5B) and **wine** (€2.4B) at risk
- Industry predicts **€800M export decline**
- Avoided feared 200% alcohol tariff (for now)

## **Industry Responses & Adaptations**
- **Airbus**: Leveraging US manufacturing footprint
- **Luxury brands**: Price increases likely ("We've experienced tariffs before" - Hermès CEO)
- **Wine/spirits**: Seeking exemptions, warning of "severe consequences"

## **Broader Implications**
The tariffs arrive as:
- EU considers reducing NATO dependence on US
- France navigates complex US-EU trade relations
- Global markets react to potential trade war

*For full analysis and updates, subscribe to Le Monde's international trade coverage.*

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*Also read:*  
- [Trump's trade war shocks US Congress](#)  
- [How European firms are adapting to new US tariffs](#)  
- [LVMH's resilience strategy in volatile markets](#)  
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