Legrand Expects $30 Million Impact from US Tariffs
French electrical and digital infrastructure provider Legrand anticipates a financial impact of approximately $30 million due to the 10% US tariff on Chinese imports, according to CEO Benoît Coquart.
Coquart stated that the company has accounted for the tariffs in its 2025 guidance. Any potential tariff escalation would result in increased cost of goods sold (COGS).
Over half of Legrand's US COGS is sourced locally, while 45-50% is imported. Of the imported portion, 15-20% originates from China, 20% from Mexico, and the remaining from other regions.
To mitigate the additional costs, Coquart said Legrand will consider passing them on through increased sales prices or implementing cost-cutting measures.
If the US were to impose a 25% tariff on Mexican imports, the financial impact would rise to an estimated $90 million.
Last week, US President Donald Trump imposed an additional 10% tariff on Chinese goods. China has implemented countermeasures, while the 25% tariff on Mexican and Canadian imports has been delayed until March 4 for border security negotiations.