Customs duties: France fears an “untenable” situation in certain sectors

By The New Obs with AFP

Published on May 25, 2025 at 1:35 p.m.

The Port of Rotterdam, January 9, 2023. — The port of Rotterdam, January 9, 2023. KRISTOF VAN ACCOM / BELGA VIA AFP

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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.

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"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," said the Minister Delegate for Foreign Trade, Laurent Saint-Martin, in an interview with the newspaper " La Tribune Dimanche ," online on Saturday, May 25.

"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 as of June 1. French exports to the United States were driven in 2024 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.

"Everything is on the table"

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," Laurent 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.

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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 was suspended until July to allow for negotiations. But 10% tariffs remain in place on most goods exported to the United States by the Twenty-Seven.

"Everything is on the table" regarding a potential European response to Trump, Laurent Saint-Martin also said. "We do not all share the same opinion on the levels of response to be provided. There are nuances that depend on the vulnerabilities, sensitivities, and relationships with the sectors of each member state," he also said.

By The New Obs with AFP