France divided over EU-U.S. tariff deal as key exports face 15% levy

France has reacted with a mix of frustration and reluctant relief after the announcement of a new tariff agreement between U.S. President Donald Trump and European Commission President Ursula von der Leyen. While the deal has helped avert a deeper trade war, many in France believe it concedes too much to Washington and leaves key sectors exposed.

Under the agreement reached on Sunday, most European exports to the United States will now face a 15 percent tariff – more than triple the previous average of 4.8 percent. The sharp increase has raised alarm across major French industries, from cosmetics and cheese to pharmaceuticals and wine.

Some of France's best-known exports could suffer significant losses. François-Xavier Huard, CEO of France's National Dairy Sector Federation, said the new terms are "unfavourable for Europeans," noting that the 15 percent levy is still higher than the existing 10 percent rate on many dairy products.

French Prime Minister François Bayrou was among the most vocal critics, calling the deal "a dark day" for the European Union and accusing the bloc of "resigning itself to submission."

The agreement has sparked debate over whether the EU should have retaliated. Analyst Philippe Crevel argued that while Europe could have imposed tariffs of its own, that route risked a broader trade war. 

"Europe chose not to escalate," he said, "but it must now become more competitive in high-growth sectors like digital technology, space, and defense."

Producers, meanwhile, are being forced to make tough decisions: pass on the 15 percent tariff to U.S. consumers – potentially driving down demand – or absorb the cost by cutting into profit margins. 

"Most will do a bit of both," Crevel said. "That could reduce exports and slow growth, unless new markets are found."

There were, however, some victories in the deal. Zero tariffs will apply to EU exports in strategically important sectors, including aircraft parts, certain chemicals, semiconductor equipment, and agricultural products like cork, used in wine bottles and flooring.

But for other sectors – including pharmaceuticals, French wines, and spirits – negotiations are still ongoing. Until those talks conclude, producers remain in limbo, uncertain whether their goods will be spared the 15 percent tariff.

As Europe recalibrates its trade ties with Washington, French exporters are watching closely – and bracing for impact.