Dialogos

France: Political Consequences Expected from US Tariffs on EU

Published January 20, 2026, 12:04
France: Political Consequences Expected from US Tariffs on EU

Analysts in France predict that the political consequences of the new US tariffs on eight European countries will be more significant than the economic ones. Estimates suggest a 10% tariff could reduce growth in these countries by 0.1%, while a 25% tariff could lead to a decrease of 0.2-0.5%. Surprisingly, EU exports to the US increased by 2% between January and November 2025, despite the tariffs, due to US companies rushing to increase their supplies. In France, exports to the US fell by 2% in the first eleven months of 2025. The largest declines were in cosmetics (-15%), beverages (-16%), and leather goods (-1%). However, exports of aerospace products rose by 35% and chemicals by 33%, partially offsetting the losses. Economic analyst Sylvain Bersiger explains that it is easier for US consumers to switch sources for certain products (like wine) than for companies to modify their supply chains for chemicals or machinery, where changes can disrupt entire production lines. This explains why some sectors were more affected than others. Overall, French companies are estimated to have lost 4 billion euros in exports to the US, but this amount is not considered particularly significant compared to the total value of French exports in 2024. The analysis highlights that political tensions and trade wars can have unpredictable consequences, but the ability of businesses and consumers to adapt can mitigate the economic impact.