The US France Trade Situation Is Tense: Luxury Companies Are Falling Collectively.

The United States is one of the most important export markets for French cheese. If the United States threatened to impose a tariff of up to 100% on the value of US $2 billion 400 million in French exports to the US, this policy is indeed a reality. French cheese makers may suffer considerable losses.

Experts in the French dairy industry say they are very concerned about the possible high tariffs imposed by the United States. In 2018, in the trade between France and the United States, the trade volume of dairy products was 177 million euros, or about 1 billion 380 million yuan, of which cheese accounted for the largest proportion, 155 million euros, or about 1 billion 210 million yuan, followed by butter, 1 million 300 thousand euros, or 10 million 170 thousand yuan. For the French cheese producers, the United States is the largest market after the European Union. In 2018, the total volume of cheese exported from France to the EU outside the market was 116 thousand tons, of which the United States accounted for 25 thousand tons, accounting for more than 20%.

Milk industry association economist Benua Rue: This is a considerable share. To be sure, it will be difficult for us to find alternative markets in the short term, because these channels need to be built and operated for many years.

Experts say the impact will depend on the extent of tariff increases. At present, the United States tariffs on each cheese in France vary from 5% to 25%, while tariffs increase to 30%, 40%, or close to 100%, which will have a very different impact on them.

US President Trump threatened to impose further tariffs on France, which made the French luxury goods company's stock price fall collectively, and this tense trade situation made European and American stock markets under pressure in the 3 day trading, and the US stock market fell for third consecutive trading days.

CNBC Ye Wen Du: This time, the main reason why Trump threatened to impose a new round of tariffs on France is the digital tax. We know that before France passed the relevant bill and imposed a 3% digital tax on large technology companies, the US technology giants were the first to bear the brunt, and Trump thought that this is not what allies should do.

Trump, President of the United States: I don't like technology companies very much because they do not fully support me. But it's nothing, I don't care. They are American companies. We need to levy taxes on US companies. This is very important. But the US government levies these companies. , Not other countries.

Trump's remarks on tariffs were almost completely safe in France's main luxury companies, and fell in full line on Tuesday local time. We saw Hermes's share price fall by 2.53%, LV's parent company's road price fell 1.48%, Dior's shares fell 1.5%, and Gucci, San Laurent, and Paris family, a luxury brand parent company, fell 1.78%. Outside the luxury sector, the share price of champagne related businesses was also affected. The Verallia price of the main glass container manufacturer in France fell by nearly 2% on Tuesday.

The United States Tariff Collection Plan for France is expected to take effect in January. Once it takes effect, it will be the second time that the United States has imposed tariffs on imported products in France in recent months. Before that, the United States has announced plans to impose tariffs on EU imports worth about $25 billion because of the arbitration result of the World Trade Organization on the issue of aircraft subsidies. France is one of the most important affected countries.

The United States is about to enter the election year. Trump needs to show his achievements to voters. Now, the pressure of trade war has been extended to allies. The market is worried that if the international trade relations deteriorate further in the future, then the Wall Street market will likely have a sell-off similar to that of last December. We will continue to pay close attention to this.