More than 10% of the turnover of these tricolor companies depends on their exports to the United States, alert French customs in a study published this Friday, while the EU negotiates with Donald Trump.
Some 2000 companies that carry out half of the French exports to the United States are exposed to the American market for 10% or more of its turnover, and would suffer half of the additional customs duties shock, according to a study of French customs published this Friday, July 25. With 48.6 billion euros in goods exported to the United States in 2024, including the essentials by 14,700 companies in the merchant sectors (excluding agricultural and financial goods), the country is the second export destination of France in value behind Germany (78 billion euros).
While the outcome of negotiations on customs duties between the European Union (EU) and the United States is hoped for 1is August, discussions continue and an agreement seemed to be emerging in recent days with American customs duties brought back to 15%, accompanied by exemptions in the aeronautical or pharmaceutical sector. Temporarily, a 10% customs duty applies to European exports to the United States.
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Half of the additional customs duties could therefore weigh on around 2,000 French companies that make three-quarters of exports of transport equipment (aeronautical and naval construction), drinks or leather goods to the United States, the study said. The ability of these companies to resist the shock of this new custom customs lies in particular in margin rates: a high rate can be reduced by a company in order to “Keep customers” or of“Absorb in whole or in part the increase in customs duties for its customers by lowering its prices”add the document.
The margin rate of exporting companies to the American market stands on average at 35.5% in 2024, compared to 27.9% for companies in France in 2022, with contrasting situations depending on the size or the sector of activity. Thus, a quarter of these companies have a margin rate below 11%, and a quarter greater than 52.1%, notes the study.
In the event that companies are trying to fully neutralize the price increase by reducing the margin rate, they should reduce them by 0.6 points with customs duties by 10%, and by almost 2 points with customs duties to 30%. Given exposure to the American market and business margin rates, the situation would be “More difficult for the manufacturing industries of transport equipment (aeronautical and naval construction)” et “For microentreprises and independent companies”estimate the authors.