Impact of Tariffs on EU Corporate Sectors

According to a recent report by Fitch Ratings, the tariffs introduced by the Trump administration are set to significantly weaken revenue and profitability growth across various corporate sectors in Europe. The chemical, automotive, and hardware industries are expected to bear the brunt of these measures.

Challenges Ahead for EU Companies

Fitch Ratings highlights that despite the presence of large manufacturing footprints in the US by many EU-based diversified industrial companies, the sizeable exports and intermediate parts supplied from outside the US will not be spared from the tariffs' impact. Furthermore, EU firms may encounter heightened competition from Chinese companies in markets outside the US, adding another layer of challenge to their operational landscape.