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Local France
7 days ago
- Business
- Local France
Impact of US tariffs varies across European Union
Ireland, with a major pharmaceutical industry, is in the front line along with Germany, for whom the United States is a major outlet for its cars, steel and machine tools. France is less exposed, even if it does have aeronautics, food, wine and luxury goods companies that risk losing markets. The EU as a whole has an annual trade surplus with the United States of $235.6 billion, according to the Bureau of Economic Analysis (BEA), which reports to the U.S. Department of Commerce. Only China has a higher amount. Germany, the industrial powerhouse Germany, the EU's largest economy, is under particular pressure due to its dependence on exports: it has a surplus of $84.8 billion with the United States, thanks to its large automobile, chemical, steel and machine industries. The United States accounts for 23 percent of the revenue of Mercedes Benz. While some of that is accounted for by SUVs manufactured in the United States and exported, they risk being hit by any tariff reprisals from the EU. The Federation of German Industries (BDI) reacted promptly to Donald Trump's announcements on Saturday, calling on the EU and the United States to "quickly find solutions and to avoid an escalation". READ ALSO: German chancellor 'cautiously optimistic' on EU-US tariff deal Advertisement Italy, France in the second line Italy and France, with surpluses of $44 billion and $16.4 billion respectively, according to US statistics (French data says the surplus is much smaller), would appear to be less affected. But some sectors are heavily exposed. The food and wine industries would be particularly affected in both countries, as is also the case for Spain. A 30-percent tariff would be a "catastrophe" for the French wine and spirits sector, Jerome Despey, head of the viticulture branch of the FNSEA union, said Saturday. Coldiretti, Italy's main agricultural organisation, said Saturday that tariffs of 30 percent would cost US consumers and Italian food producers some $2.3 billion. Like Germany, Italy is also concerned about its automotive sector. Franco-Italian manufacturer Stellantis (particularly Fiat and Peugeot) has suspended its forecasts for the year due to these uncertainties. Exposed French sectors also include aeronautics and luxury goods. LVMH, the world's largest luxury conglomerate, makes a quarter of its sales in the United States. About a fifth of France's exports to the United States come from the aerospace industry, much of it from Airbus. Austria and Sweden also have surpluses with the United States, $13.1 billion and $9.8 billion respectively. Advertisement Ireland, Europe's lab Ireland has the largest surplus among EU members, at $86.7 billion. That is largely due to the presence of major American pharmaceutical companies such as Pfizer, Eli Lilly, and Johnson & Johnson. They all set up in Ireland to benefit from a 15 percent corporate tax, compared to 21 percent in the United States. These companies can thus host their patents in Ireland and sell on the American market, where drug prices are traditionally higher than in the rest of the world. Ireland also hosts most of the European headquarters of American tech giants, such as Apple, Google and Meta, also attracted by the attractive Irish tax system. Overall, pharmaceuticals account for 22.5 percent of EU exports to the United States, according to Eurostat, with many major players having announced major investments in the United States.
Local Germany
13-07-2025
- Business
- Local Germany
Impact of US tariffs varies across European Union
Ireland, with a major pharmaceutical industry, is in the front line along with Germany, for whom the United States is a major outlet for its cars, steel and machine tools. France is less exposed, even if it does have aeronautics, food, wine and luxury goods companies that risk losing markets. The EU as a whole has an annual trade surplus with the United States of $235.6 billion, according to the Bureau of Economic Analysis (BEA), which reports to the U.S. Department of Commerce. Only China has a higher amount. Germany, the industrial powerhouse Germany, the EU's largest economy, is under particular pressure due to its dependence on exports: it has a surplus of $84.8 billion with the United States, thanks to its large automobile, chemical, steel and machine industries. The United States accounts for 23 percent of the revenue of Mercedes Benz. While some of that is accounted for by SUVs manufactured in the United States and exported, they risk being hit by any tariff reprisals from the EU. The Federation of German Industries (BDI) reacted promptly to Donald Trump's announcements on Saturday, calling on the EU and the United States to "quickly find solutions and to avoid an escalation". READ ALSO: German chancellor 'cautiously optimistic' on EU-US tariff deal Advertisement Italy, France in the second line Italy and France, with surpluses of $44 billion and $16.4 billion respectively, according to US statistics (French data says the surplus is much smaller), would appear to be less affected. But some sectors are heavily exposed. The food and wine industries would be particularly affected in both countries, as is also the case for Spain. A 30-percent tariff would be a "catastrophe" for the French wine and spirits sector, Jerome Despey, head of the viticulture branch of the FNSEA union, said Saturday. Coldiretti, Italy's main agricultural organisation, said Saturday that tariffs of 30 percent would cost US consumers and Italian food producers some $2.3 billion. Like Germany, Italy is also concerned about its automotive sector. Franco-Italian manufacturer Stellantis (particularly Fiat and Peugeot) has suspended its forecasts for the year due to these uncertainties. Exposed French sectors also include aeronautics and luxury goods. LVMH, the world's largest luxury conglomerate, makes a quarter of its sales in the United States. About a fifth of France's exports to the United States come from the aerospace industry, much of it from Airbus. Austria and Sweden also have surpluses with the United States, $13.1 billion and $9.8 billion respectively. Advertisement Ireland, Europe's lab Ireland has the largest surplus among EU members, at $86.7 billion. That is largely due to the presence of major American pharmaceutical companies such as Pfizer, Eli Lilly, and Johnson & Johnson. They all set up in Ireland to benefit from a 15 percent corporate tax, compared to 21 percent in the United States. These companies can thus host their patents in Ireland and sell on the American market, where drug prices are traditionally higher than in the rest of the world. Ireland also hosts most of the European headquarters of American tech giants, such as Apple, Google and Meta, also attracted by the attractive Irish tax system. Overall, pharmaceuticals account for 22.5 percent of EU exports to the United States, according to Eurostat, with many major players having announced major investments in the United States.
Time of India
10-07-2025
- Business
- Time of India
Meta buys 3 per cent stake in Ray-Ban parent co; shares jump
By Elisa Anzolin and Juby Babu Shares in EssilorLuxottica , the maker of Ray-Ban glasses, jumped on Wednesday after reports that Meta Platforms had acquired a stake of nearly 3% in the Franco-Italian company. The shares, which are listed in Paris, rose 5.4% to 252 euros by 0925 GMT, the biggest gainer on the pan European STOXX 600 index. Facebook-parent Meta, which has a partnership with the company for the production of smartglasses, has acquired a nearly 3% stake in the eyewear maker, a source told Reuters on Tuesday. Bloomberg said that Meta had bought a stake worth around 3 billion euros ($3.5 billion) in EssilorLuxottica and is considering further investments that could build its holding to around 5% over time. EssilorLuxottica declined to comment, while Meta did not immediately respond when contacted by Reuters. "The investment should be read as a vote of confidence in EssilorLuxottica in the smart-glasses opportunity," said analysts at Bernstein. Last year both EssilorLuxottica and Meta confirmed they discussed a potential investment by Meta in the company, after the Wall Street Journal reported the U.S. group was in talks to buy a 5% stake. In September Meta CEO Mark Zuckerberg said it would have been a "symbolic" gesture to cement their long-term partnership. Sprucing up its wearable technology with artificial-intelligence capabilities could help Meta attract new users as it invests billions of dollars in bolstering its AI infrastructure. The social media giant announced earlier this year it teamed up with Oakley, another EssilorLuxottica brand, to release AI-powered smart glasses , expanding its push into wearable tech after the success of Ray-Ban Meta glasses, millions of which have been sold since their launch in 2023. The "Oakley Meta HSTN" will feature a hands-free high-resolution camera, open-ear speakers, water resistance and Meta AI capabilities. EssilorLuxottica planned to boost its production capacity for smart glasses and hopes to expand its collaboration with Meta to other brands, Chief Executive Francesco Milleri had said in February.
TimesLIVE
04-07-2025
- Business
- TimesLIVE
Air Algerie to purchase 16 airplanes, says state media
Air Algerie signed on Thursday an agreement with the Franco-Italian ATR to purchase 16 new airplanes to boost its domestic network, state media reported. ATR is jointly owned by Airbus and Leonardo.
Scottish Sun
02-07-2025
- Automotive
- Scottish Sun
Giant car firm behind 14 brands including Fiat & Peugeot ‘faces closing factories' over EV targets, boss says
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) THE giant car firm behind 14 brands including Fiat and Peugeot may have to close factories over EV targets, its boss says. European car manufacturers are having to sell more electric vehicles to cut CO2 emissions - or risk crippling penalties. Sign up for Scottish Sun newsletter Sign up 2 The giant car firm behind 14 brands including Fiat and Peugeot may have to close factories over EV targets 2 Stellantis may have shut some of its factories doors Stellantis may have shut some of its factories doors due to the risk of hefty European Union fines for not complying with CO2 emission targets, the chief of the Franco-Italian automaker for Europe said on Tuesday. The automaker industry has successfully lobbied for more time to comply, as fines will be based on 2025-2027 emissions rather than just in 2025. Stellantis' Europe chief Jean-Philippe Imparato slammed the targets, saying they were still unreachable for automakers. He then exposed his company to fines of up to 2.5 billion euros within "two-three years." Speaking at a conference in the lower house of parliament in Rome, he said that without significant changes in the regulatory situation by the end of this year, "we will have to make tough decisions." Stellantis would therefore either have to double its electric vehicle sales, which is impossible, or cut the production of petrol and diesel vehicles, Imparato said. "I have two solutions: either I push like hell (on electric) ... or I close down ICE (internal combustion engine vehicles). And therefore I close down factories," he said, at one point mentioning the Italian van-making plant of Atessa. Meanwhile discussions over the future of Maserati remain ongoing as Stellantis prepared to welcome its new CEO. New CEO Antonio Filosa faces huge financial decisions as a result of President Trump's brutal trade tariffs. Stellantis - which owns 14 brands across the globe - was reported to have hired management consulting firm McKinsey and Co to review the situation. Two new Dodge Charger models McKinsey was called in April this year to advise on struggling brands Maserati and Alfa Romeo, with both experiencing a dire 2024. Last year, the number of Maserati units sold plunged from 26,600 to just 11,300. Stellanis told Motor1: "McKinsey has been asked to provide its considerations regarding the recently announced U.S. tariffs for Alfa Romeo and Maserati." Trump's new legislation means tariffs of at least 25 percent on anything imported into the US. Maserati has no new model launches scheduled as it waits for a new business plan, with the last one having been put on hold by Stellantis in 2024. The plan is expected to be presented soon after Filosa starts his new role. But as things stand, it is understood that all options remain on the table for the world-renowned Italian brand. It came after the global firm pulled the plug on a £1.3billion investment in Maserati earlier this year. Plans for the hotly anticipated electric MC20 Folgore were also binned due to low demand.
