Are Americans going to have to pay a lot more for our champagnes or our luxury bags? The White House threatens to tax European products once again, particularly French products. But the decision will not be made before the end of July. This endless trade war is the result of the interminable file of European subsidies to Airbus which would have penalized Boeing.
Donald Trump and his threats
For the moment, these are simply threats, threats that are not always carried out. But the White House can have a heavy hand. In the context of this dispute over subsidies to Airbus, it has already taxed European and French products. Our non-sparkling wines of less than 14 degrees of alcohol are for example more taxed today, which obviously penalizes sales.
Very upset by the French desire to tax GAFA, the American tech giants, Donald Trump also threatened last December to hit our luxury groups or German car manufacturers. But for the moment, his threats have remained unheeded.
The prices of certain products could double
This time, the White House takes out the Airbus file card to threaten again. And products from France, Germany, Spain and the United Kingdom are affected: olives, beer, gin or even luxury products. Prices could simply double.
Groups like LVMH, which range from spirits to the biggest luxury clothing brands, could be very affected. Remy Cointreau or Pernod Ricard could also suffer. In Paris, we are looking at this new threat in concert with the European Union, and we are saying it very clearly: we will not hesitate to react with taxes on American products.