French companies in doubt

This text corresponds to part of the transcription of the report above. Click on the video to watch it in full.

The bad news fell for an emblematic brand of cookies and chocolate. In a week, the products it exports to the United States will be taxed up to 15 %. Difficult to swallow for its boss, which puts a lot on sales across the Atlantic. “”The United States is one of our largest export market, 8% of our overall figures“says Christophe Brohart, director of SAPP Maxim’s.

Will Americans be so fond of these sweets if they cost more? This is the question posed by the business with concern. Especially that in addition to customs duties, the exchange rate between the euro and the dollar has become very unfavorable for the French company. “”It is a bit of a double penalty for our customers since in fact we will have the 15 % which will turn almost into 25 % with the impact of the dollar. A box that would cost $ 10 will cost $ 12.50 tomorrow for the American customer, for exactly the same product. So, it is enough that one of our partners say: ‘I change the product’ or ‘I will evolve towards a different range’, it can have a direct impact“Fears the director.

One sector is particularly likely to suffer from these customs duties in France: wine producers and spirits, who hoped to escape the tax of Donald Trump. Americans are the biggest customers in the export world.

In Alsace, in this wine fair this morning, the formalization of 15 % makes winegrowers as sullen as the weather of the moment. Joel Rebeil, Alsatian producer exports 10 % of his bottles in the United States. “”Anyway, an impact for the end consumer. And for us too, we provide this, since we are afraid to sell less“, He worries. According to the government, more than 2,000 French companies will be particularly affected by customs duties in the United States.