Table of Contents:
Introduction to American tariffs
In recent months, trade tensions between the United States and Europe have returned to the center of attention, especially following Donald Trump’s statements regarding the application of new tariffs. Although Europe is currently excluded from these measures, the climate of uncertainty continues to worry international markets. The European stock exchanges reacted negatively, closing in red, and analysts warn that it is only a matter of time before even the Old Continent
can be involved.
Trade between Europe and the United States
In 2023, the United States was the European Union’s main trading partner, accounting for 19.7% of exports and 13.7% of imports. This trade relationship is crucial, as the EU mainly exports machinery, vehicles and chemicals to the United States, while importing energy and raw materials. European exports to the United States have increased significantly in recent years, highlighting the importance of this
transatlantic link.
Concerns for the automotive industry
Automotive and components are certainly among the sectors most at risk in the event of new tariffs. Slovakia, in particular, could suffer a devastating impact. With automotive production that represents 50% of its industrial production and 42% of total exports, the country is often referred to as the ‘Detroit of Europe’. Trump’s threats could therefore represent a big problem for the Slovak economy, which is already fragile due to its dependence on this sector
.
The experts’ reactions
According to Gabriel Debach, market analyst at eToro, concerns about the impact of fees may be exaggerated. Despite past trade tensions, trade between the EU and the United States has shown an upward trend. However, the European economy is currently more vulnerable than in the past, and the ability of companies to adapt to a changing international environment will be crucial for the future
.
Conclusions and future prospects
In summary, while Europe currently seems exempt from the new American tariffs, the situation remains uncertain. European companies, especially those in Slovakia, will have to prepare to face a possible scenario of tariffs that could profoundly affect their operations. The response to these challenges will depend on the resilience of the European market and the innovation capacity of its industries
.
