The EU-US trading relationship is the most valuable in the world, worth approximately €1 trillion annually. While tariffs are designed to encourage domestic production in the US, the reality is that they often result in higher costs for importers, which are likely to trickle down to European exporters.
Key sectors such as automotive, machinery, chemicals, and pharmaceuticals are particularly vulnerable, with Germany—the EU’s economic powerhouse—facing outsized risks due to its reliance on US-bound exports. If universal tariffs are implemented, Eurozone GDP could shrink by up to 1.5%, with Germany alone potentially losing 1.6% of its GDP. Understanding how your specific products and markets could be impacted is the first step toward preparation.