Shares in French luxury companies fell in response to the tariff threat against French champagne, handbags, cheeses and other products.
Hermes was around 2.8% lower, while LVMH and Kering fell 1.7% and 2.8% respectively. Champagne maker Vranken Pommery was down by 2.4%.
French products will not face tariffs immediately as the U.S. Trade Representative still intends to gather public comments and hold a public hearing in January.
Based on past experience of Section 301 tariffs, primarily applied to Chinese goods, France would face punitive tariffs in two or three months.
Any retaliatory action from France would have to be taken at an EU-wide level because the bloc is a customs union which applies duties at its border.