Legrand Braces for $30 Million Impact from US Tariffs on Chinese Imports

Legrand, the French electrical and digital infrastructure giant, is preparing for a financial hit of approximately $30 million due to the 10% tariff imposed by the U.S. on Chinese imports, according to CEO Benoît Coquart. Despite this impact, Coquart emphasized that the company does not view the tariffs as a strategic threat and has incorporated them into its 2025 guidance.

Currently, over half of Legrand’s cost of goods sold (COGS) in the U.S. is sourced locally, while 45%-50% comes from international suppliers. Notably, 15%-20% of these imports originate from China, with 20% from Mexico and the remaining 10% from other regions.

When asked how the company plans to manage the increased costs, Coquart indicated that Legrand might either raise selling prices or implement cost-cutting measures. The situation could escalate further if a 25% tariff were imposed on all imports from Mexico, potentially raising the estimated financial impact to $90 million.

The recent tariff changes were announced by U.S. President Donald Trump, with the additional 10% tariff effective from February 4. Although a 25% tariff on goods from Mexico and Canada has been delayed until March 4, negotiations are ongoing to address border security issues and drug trafficking concerns.