Impact of US Tariffs on EU Corporate Sectors

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

Challenges Ahead for EU-Based Companies

Fitch highlights that despite the substantial manufacturing presence of EU-based diversified industrial companies in the US, the tariffs will adversely affect their exports. Additionally, the supply of intermediate parts from outside the US is expected to face disruptions.

Increased Competition from Chinese Firms

The report also warns of heightened competition from Chinese companies in markets outside the US, posing further challenges to EU firms striving to maintain their global market share.