France's Legrand see $30 million impact from US tariffs on Chinese goods

Legrand SA

13/02/2025 06:00

By Anna Peverieri
       Feb 13 (Reuters) - French electrical and digital
infrastructure group Legrand  LEGD.PA  does not see U.S. tariffs
as a strategic issue and expects the financial impact of the 10%
U.S. tariff on Chinese imports to be around $30 million, CEO
Benoît Coquart told Reuters.
    The company has factored the tariffs into its 2025 guidance
and said any further increases would add to its cost of goods
sold (COGS).
    Slightly more than half of Legrand’s U.S. COGS is sourced
locally, while 45%-50% comes from abroad, Coquart said. Of that,
15%-20% originates from China, 20% from Mexico, and the
remaining 10% from other regions, he added.
    Asked how Legrand plans to absorb the additional costs,
Coquart said the company would either "pass them on through
higher selling prices or offset them with cost-cutting
measures".
    If the U.S. were to impose a 25% tariff on all imports from
Mexico, the estimated financial impact would rise to $90
million, the company forecast.
    Last week, U.S. President Donald Trump imposed an additional
10% tariff on Chinese goods, effective February 4, with Chinese
countermeasures taking effect this week.
    He delayed a 25% tariff on goods from Mexico and Canada for
a month until March 4 to allow negotiations over steps to secure
U.S. borders and halt the flow of the drug fentanyl.


 (Reporting by Anna Peverieri; Editing by Lisa Shumaker)
 ((Anna.Peverieri@thomsonreuters.com;))