– Guest article, written by Vincent Lautier –

The new taxes on imports decided by Donald Trump may well have repercussions to France. Electronic products, digital services, IT components: The whole tech sector is potentially concerned, even if we are in the United States.

A trade war that goes beyond American borders

You could not miss this information: Donald Trump wants to impose additional customs tariffs on the majority of imports in the United States. If the European Union is not the main target (Although 20% customs tariffs, it’s not nothing), it remains very directly concerned, in particular on technological products. The repercussions will not stop at the American borders.

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Concretely, electronic products manufactured in Europe or dependent on European components could cost more exported. And If demand drops on the American side, French companies may seek to compensate Elsewhere including in France. But that’s not all.

Think Apple, Nintendo, or any other giant who will have to increase its prices massively on American soil to integrate customs duties, do you really think that these companies will sell a product 1000 euros in France and 1300 euros in the United States? Probably not, Commercial logic will clearly smoothing the prices internationally. Consumers from around the world will therefore partially pay pricing increases to limit those imposed on American consumers.

IT and electronic products on the front line

Laptops, smartphones, game consoles, servers … All this equipment is, in fact, vulnerable to the rise in customs duties. Some French companies in the tech sector, already weakened by the rise in raw materials costs, could revise their prices upwards.

And it’s not just a story of equipment. Digital services also could be affected, directly or by ricochet. If France decides to replicate by taxing American digital technology (Apple, Google, Microsoft, and even Netflix, Disney+, etc.), they could simply increase the increase in the subscriptions or services used in France.

The domino effect

The risk is a double effect on prices: on the one hand, less competitive European technological products for export, on the other, from American services more expensive to import. And in the middle, the French consumer, who could see the invoice climb to equip or use their usual digital services.

French companies in the tech sector, such as clouds, cybersecurity or computer equipment, could also suffer from a decline in international demand, especially if commercial climbing continues.

No Riposte Claire Côté European yet

For the moment, the European Union is delaying. Emmanuel Macron and several ministers condemned measures deemed “unjustified”, but call to avoid a too brutal reaction which would risk aggravating the situation. China has just answered Donald Trump by also applying, in a few days, customs fees of 34%. So we are still far from a de -escalation.

On the business side, we observe. Many are waiting to see how the situation is evolving before making decisions on prices or investments abroad. But beware, if everyone is waiting, nothing will move, neither in one direction, nor in the other. Except the prices, which will fly.

Article published by, Vincent Lautierinvited by friend Korben. You can also Follow me on Blueskymake a jump on My pingoo.com blog or read The little tests that I sometimes publish in the “Gadgets Tech” category !

Source : NPR,, Cnn.


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