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 undermine revenue and profitability growth across various corporate sectors in Europe. The analysis highlights the chemical, automotive, and hardware industries as those likely to bear the brunt of these measures.

Challenges Ahead for EU Companies

Fitch points out that while many EU-based diversified industrial companies have significant manufacturing operations in the US, exports remain substantial and will be adversely affected by the tariffs. This includes intermediate parts sourced from outside the US, further complicating the scenario for European firms.

Additionally, the report warns of increased competition from Chinese companies in non-US markets, posing another layer of challenge for EU corporations striving to maintain their global market share.