Schneider Electric: Trump abandons his “Revenge Tax”, Schneider Electric and Publicis say thank you on the stock market

(BFM Stock Exchange) – The US administration withdrew from the finance bill. Furthermore, a measure that would have largely penalized businesses with activities in the United States. However, This removes a sword from Damocles for Schneider, Legrand and Publicis.

Trump administration measures continue to cause chain reactions to European equity markets. Consequently, For once. However, it is not the customs duties that make the rain and the good weather but another decision: the abandonment of a new version of the “section 899” of the general code federal taxes (“Internal income code”), a device nicknamed “Revenge Tax”. Therefore,

This measure would have enabled the US government to “impose an additional tax up to 20% on the revenues of foreigners in the United States (capital income. Moreover, commercial income), if the United States government estimates that US companies are unjustly treated abroad,” schneider electric: trump abandons his said Oddo BHF, mid-June.

“Such ideas do not give foreign investors the feeling of being welcome,” added the broker.

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Besse the deletion

De facto, this measure, included in the US finance bill (the famous “Big Beautiful Bill” by Trump), would have increased the taxation of foreign companies with important activities or subsidiaries in the United States.

This text would allow “the United States to collect higher taxes on foreign entities from countries that apply ‘discriminatory’ taxes with regard to American companies. For example, ” said Deutsche Bank.

“Most European countries are concerned, notably Germany, France and the United Kingdom, (…) although this is ultimately the discretion of the Secretary of Defense,” said the German bank.

“If it is adopted. the legislation will increase taxes paid on American schneider electric: trump abandons his income by 5% in the first year, then by 5% for each following year during which ‘discriminatory taxes’ are in place, up to a maximum of 20%,” said Deutsche Bank.

It will not happen. During the night of Thursday to Friday. the American secretary of the Treasury, Scott Bessent, asked the Republican parliamentarians to remove this new version of section 899 of the finance bill.

The United States has given up this measure after the US Treasury Department has announced that it had taken. an agreement at the G7 level so that US companies are not (temporarily) subject to certain surcharges in other countries.

Relief for investors

“Given the number of emails received on this subject in my reception box. we can say that global investors will push a sigh of relief after this information” observes, not without humor, Jim Reid of Deutsche Bank.

On the Paris Stock Exchange. several schneider electric: trump abandons his titles are brought by this announcement with, in the first place, Schneider Electric and Legrand, two groups specializing in electrical equipment and energy efficiency technologies, which take 6% and 4.4% respectively in the middle of the afternoon.

North America represents around 38% of Schneider’s revenues and the “North and central America” ​​area is 40.1% of Legrand’s turnover.

Especially the United States constitutes the heart of the growth of the two companies due to the boom. of artificial intelligence (AI) which results in an exponential development of datacenters.

By ricochet, the rise of these very energy -consuming structures causes strong growth in demand for Schneider and Legrand products. In 2024, Schneider’s growth in North America reached 14.6% in comparable data, an increase which increased to 15.2% in the first quarter of 2025.

Deutsche Bank had calculated that the “Revenge Tax” at full rate (and therefore after four schneider electric: trump abandons his years) would have obeyed the benefits of Schneider. Legrand by around 5%. “It removes uncertainty for them,” comments a financial intermediary.

An analyst explains that the two values ​​can also be carried by an action plan for the artificial intelligence. provided by the United States. According to sources cited by the Reuters agency. the Trump administration is preparing a set of executive measures aimed at stimulating energy supply to boost American expansion in AI.

Another group which is carried by the announcement on section 899: Publicis. The advertising group made 50.8% of its revenues in the United States, according to an estimate made by Oddo BHF last fall.

Julien Marion – © 2025 BFM Bourse