Trade tensions: will Biden reverse Trump's tariffs?

The President-elect of the United States Joe Biden, whose inauguration takes place this Wednesday, January 20, will he continue the commercial standoff imposed by his predecessor Donald Trump?

French wine and spirits producers, soap makers, leather goods, cosmetics and aeronautics sectors hope not.

These flagships of the French economy have in common that they are under the threat or the threat of punitive customs duties applied by the United States.

Two subjects poison Franco-American relations.

The first is the fifteen-year-old Airbus - Boeing dispute.

Washington accuses the European Union (EU) of subsidizing Airbus, the Europeans accuse the Americans of doing the same with Boeing.

Since the fall of 2019, the American administration has applied increased customs duties not only on French aeronautical products, but also on our wine.

"A last blow of the chin from Donald Trump" resulted in a second round of sanctions in early January, sighs at the Quai d'Orsay.

The "Trump tax" extended the list of wines concerned - champagne is still spared - and included cognacs.

Same punishment for aircraft spare parts.

READ ALSO>

Joe Biden at the head of the United States: what can change, or not, for France

The situation worsened with the Gafa tax that France imposed on platforms that pay no - or little - tax in France.

The Trump administration's tit-for-tat retaliation: the announcement of customs surcharges on soap, makeup and lipsticks, or even handbags.

Of course, Washington has just suspended the sanction.

But the threat still exists.

"The legal arsenal is in place, they only have to press a button to hurt us", loose the part of a large group of leather goods.

The outstretched hand of Bruno Le Maire

This is to say if the victory of Joe Biden arouses immense expectations on the part of the sectors concerned.

And the hope of a de-escalation.

"The absolute priority remains the immediate suspension [

Editor's note: new American customs duties

] and the end of the bidding process," insists the National Interprofessional Bureau of Cognac, asking Emmanuel Macron that the subject be "expressly mentioned during his first exchange. With Joe Biden.

"The rapid lifting of taxes on these files is expected as a strong signal from the Americans," confirms Franck Riester, the Deputy Minister in charge of Foreign Trade.

In turn, the European Union, which has jurisdiction over trade policy, would obviously cancel its sanctions on several American products (cotton, ketchup, agricultural equipment, etc.)

At the Ministry of the Economy, however, we refuse to make plans on the comet.

“We hope to start the relationship from scratch, but remain cautious.

The Biden administration has not sent any signal, and even if the dialogue becomes constructive again, it will not give us any gifts ”.

READ ALSO>

Investiture of Joe Biden: a friend of France at the head of the United States?

While waiting for this signal, Bruno Le Maire has taken the lead.

In The New York Times on Monday, he reached out.

"The European Union is impatiently awaiting a change in the political climate", he stressed.

Message received?

Hearing before the Senate on Tuesday, the future US Treasury Secretary Janet Yellen said that the Democratic administration would play the card of appeasement on the delicate issue of the taxation of the digital giants.