2025 EU-US Trade Agreement: A Boon for French Industries

The new EU-US trade agreement reduces tariffs, greatly benefiting French industries like aerospace and pharmaceuticals.

Key Points

  • • Tariffs reduced to 15% for many European goods, with exemptions for key sectors.
  • • The aerospace industry, led by Airbus, benefits from complete tariff exemptions.
  • • Over 2,000 French companies are affected, with varying impacts on profit margins.
  • • The agreement aims to strengthen economic ties and ease trade tensions.

The United States and the European Union have recently finalized a landmark trade agreement that significantly impacts French industries by reducing tariffs to 15% on a variety of products. Notably, key sectors such as aerospace, semiconductors, and generic pharmaceuticals will see complete exemptions from tariffs, a decision hailed as particularly beneficial for France's aerospace sector, which is led by Airbus. Prior to this agreement, Airbus faced a hefty 10% tariff since April 2025, which has now been eradicated, providing crucial relief to the company and marking a substantial moment for French industry.

According to French customs data, over 2,000 French companies are directly affected by US tariffs. The impact of the tariff adjustments will vary across different sectors, with some companies positioned to absorb the financial implications better than others. This agreement, which emerged from discussions between European Commission President Ursula von der Leyen and US President Donald Trump, is seen as a strategic effort to enhance economic ties and alleviate ongoing trade tensions between the EU and the US. The easing of tariffs on agricultural products and critical materials is also expected to bolster cooperation and support the stability of transatlantic trade relations.