Impact of EU-US Trade Agreement Looms Over French Economy
The recent EU-US trade agreement imposes a 15% tariff on European exports, raising concerns for the French economy, particularly in the wine and pharmaceutical sectors.
Key Points
- • French Economy Minister Éric Lombard calls the new trade agreement 'a bad deal but the least bad solution.'
- • The EU-US accord includes a 15% general tariff on European goods, with exceptions for certain sectors.
- • Industry representatives express disappointment and uncertainty over potential economic losses from the tariffs.
- • President Emmanuel Macron criticizes the EU's negotiation strategy as insufficiently assertive.
On July 30, 2025, French economic operators convened at the Ministry of Economy in Bercy to discuss the implications of the newly signed EU-US trade agreement, which imposes a 15% tariff on European products exported to the United States. In a statement, Economy Minister Éric Lombard expressed relief at avoiding a severe trade escalation, yet he characterized the deal as unfavorable, saying it was a "bad deal but the least bad solution." The meeting, which included discussions with other ministers and business leaders, resulted in little concrete resolution, aside from a commitment to relay industry concerns to the European Commission and the creation of a dedicated website for affected businesses.
The tariffs, officially imposed following an agreement between European Commission President Ursula Von der Leyen and former U.S. President Donald Trump, have led to widespread anxiety among French industries, particularly in sectors such as wine and pharmaceuticals, where there are calls for exemptions from the new tariffs. Minister Laurent Saint-Martin pointed out that while discussions around tariffs on services need to be initiated, further clarity on exemptions is crucial. Although the agreement explicitly exempts the aerospace sector, concerns remain vague for wines and spirits; this ambiguity prompted Annie Genevard, the Minister of Agriculture, to voice worries about the potential economic fallout, with some estimates suggesting losses upward of 800 million euros for the food industry alone.
French industry representatives left the meeting feeling dissatisfied, as expressed by Patrick Martin, head of the Medef business confederation, who stated that significant financial support for sectors adversely affected by the tariffs did not appear forthcoming. Additionally, Prime Minister François Bayrou criticized the trade negotiations, branding the agreement a "submission to the USA." Amid these challenges, President Emmanuel Macron added his voice to the criticism, arguing for a firmer negotiation approach from the EU to protect French interests in future discussions.
As dialogues continue regarding the implications of the trade agreement, the overarching sentiment among French officials and businesses is one of caution and concern, signaling possible ongoing economic challenges as they navigate the realities of new tariffs that could reshape existing trade dynamics across the Atlantic.