Customs duties: France fears an "untenable" situation for its main export sectors to the United States

France fears an "untenable" situation in the main export sectors to the United States, such as wine and cosmetics, which are threatened with 50% customs surcharges by Donald Trump due to lack of progress in trade negotiations with the European Union (EU).

"For some of our sectors, such as wines and spirits, cosmetics, aeronautics and all those that are successful in exporting, this would lead to an absolutely untenable situation in the long term," declared the Minister Delegate for Foreign Trade, Laurent Saint-Martin, in an interview with the newspaper La Tribune Dimanche , published online on Saturday, May 24. "It is therefore not a desirable outcome," added the minister, referring to the American president's threat on Friday to hit the European Union with 50% customs duties from June ¹ .

French exports to the United States in 2024 were driven by aeronautics (9.1 billion euros, or 18.8% of the total), beverages (4.1 billion euros, 8.4%) and pharmaceutical products (3.8 billion euros, 7.9%), according to figures from the French Ministry of the Economy.

More broadly, the United States exports software and communications services to the EU, while Europe mainly sells them automobiles, machine tools, and transportation equipment. "This would obviously be a catastrophe for everyone, but I insist, first and foremost for the American economy," Mr. Saint-Martin also said.

The European Union is working in "good faith" to secure a trade agreement with the United States based on "respect" and not on "threats ," European Trade Commissioner Maros Sefcovic, who is negotiating for the EU, said on Friday.

In recent months, the EU has been hit three times by tariffs from the US administration: 25% on steel and aluminum, announced in mid-March, 25% on automobiles, and then 20% on all other European products in April.

This latest surcharge has been suspended until July to allow for negotiations. However, 10% tariffs remain in place on most goods exported to the United States by the 27 member states.