Fitch Ratings Predicts Revenue and Profitability Challenges for EU Industries

In a recent report, Fitch Ratings highlighted the potential negative effects of the Trump administration's tariffs on European corporate sectors. The chemical, automotive, and hardware industries are expected to bear the brunt of these changes, facing weakened revenue and profitability growth.

Impact on EU-Based Diversified Industrial Companies

Despite many EU-based diversified industrial companies operating substantial manufacturing facilities in the US, their exports and intermediate parts supplied from outside the US will not be spared from the tariffs' impact. This scenario could further complicate their competitive stance in global markets.

Increased Competition from Chinese Firms

Adding to the challenges, Fitch pointed out that EU firms might encounter heightened competition from Chinese companies in non-US markets, potentially squeezing their market share and profitability even further.