Trade Flows Between France and the US Increased by 6% in 2018 Despite New Restrictions
February 13, 2019
In the News
France and the United States have established balanced and mutually beneficial economic ties over the years. According to French Trade Statistics published on February 7th, trade in goods between France and the United States reached €74 billion in 2018, up 6% from 2017. The bilateral trade balance between the two countries remains close to equilibrium. But uncertainty is growing for companies on both side of the Atlantic as global trade conflicts have gained in intensity.
The United States’ trade policy has recently shifted toward more protectionism that aims at reducing its overall trade deficit. Higher tariffs on EU steel and aluminum were adopted in June 2018. Trade between France and the US has not yet suffered from the US’ new restrictions on imports, but 2019 trade flows might face challenges if the US imposes additional tariffs, such as on the auto industry. US-EU trade, which President Trump and President Juncker of the European Commission agreed to begin in July 2018, will continue in 2019.
Chinese imports have also been targeted by US trade regulators. Since then, tension has arisen between the US and China, and if no deal is reached before March to settle their trade dispute, the US threatens to increase tariffs on Chinese goods.
In Europe, the Brexit referendum in the UK has also shaken up the global business environment, and deadlines to approve an exit deal among European countries for the United Kingdom to leave the European Union and European Single Market is fast approaching.
Through an ambitious agenda, the French-American Foundation promotes open minded dialogue between French and American leaders in order to build lasting working ties and to advance solutions to problems of shared concern. The Foundation is hosting an event on February 13 with two experts on China-related affairs to discuss the relationship between China and the US and its potential implications for French and American businesses.
France & The Unites-States: 2018 Economic Report, Embassy of France in the US
Spécialisations USA-UE-Chine et perspectives du commerce mondial, CEPII, December 5 , 2019
Commerce mondial : « L’antagonisme frontal entre Pékin et Washington pourrait continuer à se durcir », Le monde, February 8, 2019
Fearing Trump’s China tariffs may never end, companies are taking action, Washington Post, February 13, 2019
CEOs Are Scrambling to Avoid Trump Tariffs and Survive Trade War, Fortune, February 7, 2019
Responsible competition and the future of U.S.-China relations, Brookings, February 6, 2019