Finance
France's Legrand see $30 million impact from US tariffs on Chinese goods
Published by Global Banking & Finance Review®
Posted on February 13, 2025
2 min readLast updated: January 26, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 13, 2025
2 min readLast updated: January 26, 2026
Legrand anticipates a $30 million impact from US tariffs on Chinese imports, with strategies to manage costs through price adjustments or cost-cutting.
By Anna Peverieri
(Reuters) - French electrical and digital infrastructure group Legrand 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)
Legrand expects a financial impact of $30 million from the 10% US tariff on Chinese imports.
Legrand plans to either pass on the additional costs through higher selling prices or offset them with cost-cutting measures.
Approximately 15%-20% of Legrand's cost of goods sold (COGS) originates from China.
If a 25% tariff were imposed on imports from Mexico, Legrand estimates the financial impact would rise to $90 million.
Slightly more than half of Legrand's US cost of goods sold is sourced locally.
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