French electrical and digital infrastructure giant Legrand is downplaying concerns over U.S. tariffs, with CEO Benoît Coquart stating that the 10% tariff on Chinese imports will have a manageable financial impact of approximately $30 million. Coquart spoke, confirming that the company has already integrated this estimate into its 2025 financial forecast.
Legrand’s cost of goods sold (COGS) in the U.S. is composed of both domestic and international sourcing. According to Coquart, over half of the company’s U.S. COGS is locally sourced, while 45%-50% is imported. Of the imported goods, 15%-20% come from China, 20% from Mexico, and 10% from other regions.
In response to questions about how Legrand will mitigate the effects of the tariff, Coquart explained that the company would either increase product prices or implement cost-cutting strategies to offset the financial burden.
If the U.S. were to impose a more significant 25% tariff on all goods from Mexico, Legrand anticipates the financial impact could rise to $90 million, a scenario the company is closely monitoring.
This development follows U.S. President Donald Trump’s recent decision to introduce an additional 10% tariff on Chinese imports starting February 4. Meanwhile, Trump delayed the implementation of a 25% tariff on goods from Mexico and Canada until March 4, as negotiations continue over border security and efforts to combat fentanyl trafficking.
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