French infrastructure group Legrand is to raise prices, adjust supply chains and freeze spending to offset up to $200m in costs from U.S. tariffs on Chinese imports, according to CEO Benoît Coquart.
Legrand expects the financial impact of US tariffs on Chinese imports to be around $150m to $200m on adjusted earnings before interest and tax this year.
This is based on the assumption that the 145% US tariff on Chinese goods will fall to 50–60% later in the year.
In February, Legrand had estimated the impact of a previous 10% US tariff on Chinese imports to be around $30m.
The group plans to implement a standard pricing strategy for products sourced from China. These price increases on US imports could lead to a 1% to 2% rise in group-wide pricing, Coquart said.
Legrand is also shifting production from higher-tariff countries such as China to lower-tariff ones including Vietnam, India and Mexico.
Legrand opened a 500-employee factory in Vietnam to shift some of its manufacturing operations from China during president Trump’s first term of office.
Coquart said Legrand planned to postpone recruitment rather than engage in massive layoffs.
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