Remy Cointreau CEO: Trump's proposed 10% tariff would not kill us
Adds background in paragraph 2, CEO comments from paragraph 4
LONDON, Nov 28 (Reuters) -Remy Cointreau RCOP.PA would be able to handle a 10% tariff on foreign goods, mainly via cost cuts, if imposed by incoming U.S. President Donald Trump, CEO Eric Vallat said on Thursday.
Trump has proposed tariffs of 10% on all foreign made goods imported into the United States in a bid to eliminate the country's trade deficit, which would impact spirits including Remy's cognacs, which can only be made in France.
"10% is not going to kill us is for sure," Vallat said, adding there would be a negative impact but not as significant as that of tariffs currently imposed on its products in China.
Beijing has set provisional duties of up to 40% on European Union brandy as part of a trade dispute with bloc.
Vallat said Remy would focus on cost cutting and margin optimisation to offset any U.S. tariffs, though it could also increase prices.
Another strategy previously used by companies in different industries to mitigate the impact of tariffs is to ship stock into a country ahead of threatened duties being imposed.
Vallat said Remy was considering every possibility and managing its business as smartly as possible, but declined to elaborate.
Reporting by Emma Rumney; editing by Jason Neely
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