The French government has raised a red flag over a looming trade conflict, triggered by threats from U.S. President Donald Trump to impose 50% tariffs on key European exports—including wine, cosmetics, and aeronautical products—if trade negotiations between the United States and the European Union fail to show meaningful progress by June 1.
In an interview with La Tribune, France’s Minister Delegate for Foreign Trade, Laurent Saint-Martin, voiced deep concern over the implications such tariffs would have on strategic French industries that have carved out strong positions in the U.S. market. “This measure is not only undesirable—it would create an unsustainable situation,” Saint-Martin warned, underscoring the significant blow these sectors could suffer.
The warning comes amid tense negotiations between Brussels and Washington. Saint-Martin stressed that these punitive measures would harm both economies, although he argued the long-term damage could be greater for the U.S., given the integrated nature of transatlantic trade.
High-Stakes for Major Export Sectors
In 2024, France’s exports to the U.S. were dominated by the aeronautical sector, totaling EUR 9.1 billion and making up 18.8% of total exports. Beverages, including wine and spirits, accounted for EUR 4.1 billion (8.4%), while pharmaceuticals contributed EUR 3.8 billion (7.9%). These industries not only represent economic value but also cultural prestige and strategic innovation.
Across the Atlantic, the U.S. primarily exports software and digital communication services to Europe. Meanwhile, Europe supplies the U.S. with automobiles, high-tech machinery, and transportation equipment—products that are deeply embedded in global supply chains.
Tariff Tensions Escalate
The 50% tariffs are the latest threat in a series of measures taken by the U.S. administration in recent months. Since March, Washington has enacted 25% tariffs on European steel and aluminum, followed by additional levies on automobiles and various other European goods in April. While some of these have been temporarily suspended to allow room for negotiations, uncertainty looms as the July deadline approaches.
European Trade Commissioner Maros Sefcovic, currently leading negotiations on behalf of the EU, affirmed that Brussels is committed to a resolution rooted in mutual respect. “We are working in good faith. We want a stable, negotiated outcome—not one based on unilateral threats,” Sefcovic stated during a press briefing.
European Response Remains Open
France has called for a unified and measured European response if the U.S. follows through with the tariff threat. Saint-Martin acknowledged that consensus among EU member states may prove difficult due to varying sectoral dependencies and vulnerabilities. Nevertheless, he emphasized that “all options remain on the table,” hinting at possible retaliatory measures or counter-tariffs from the EU bloc.
The coming weeks will be pivotal. As U.S.–EU trade talks continue, exporters across France and the wider European Union are holding their breath. The stakes are high—not only for economic interests but for the broader stability of transatlantic trade relations.
Source: Vinetur