Trade War Threatens French Economy: New Tariffs Impact Global Markets

A trade standoff between France and the United States is escalating, raising concerns about potential economic fallout for France and beyond. Washington’s imposition of a 20% tariff on all European products has sent shockwaves through Paris, with Prime Minister François Bayrou warning of significant economic damage. Several sectors are especially vulnerable: aerospace, wineries, automotive, luxury goods, and cheeses. These industries rely heavily on the U.S. market, leaving France’s economy exposed to potential disruption. 2024 figures reveal that French aerospace exports to the U.S. surpassed €9 billion, illustrating France’s vulnerability in this market. This conflict has implications beyond the European Union as it highlights the fragility of transatlantic trade relations and the rise of protectionist policies.