Impact of Tariffs on EU Corporate Sectors

In a recent report, Fitch Ratings highlighted the potential negative effects of the Trump administration's tariffs on European corporate sectors. The analysis points to a significant weakening in revenue and profitability growth, with the chemical, automotive, and hardware sectors expected to bear the brunt of the impact.

Challenges for EU-Based Companies

Despite the presence of large manufacturing footprints in the US, EU-based diversified industrial companies face challenges. Exports remain sizeable and are likely to be affected by the tariffs, alongside intermediate parts supplied from outside the US. Furthermore, these companies may encounter heightened competition from Chinese firms in non-US markets.