Trump’s tariffs hit Europe hard with up to 37% penalties
Many regions in the world, including the EU, are dealing with the blow of U.S. President Donald Trump’s newly reimposed tariffs.
The sweeping tariffs, ranging from 10% to as high as 37%, impact a wide swath of European economies — particularly the EU's industrial powerhouses.
Germany, France, Italy, and Spain — major exporters of automobiles, heavy machinery, and luxury goods — are now subject to 20% tariffs under Trump’s revived trade strategy. These countries, which collectively account for over 60% of the EU’s exports to the U.S., are expected to feel immediate economic strain.
Eastern and Southeastern Europe have it even worse. Countries like Serbia, Albania, and Bosnia face tariffs as high as 30-37%, a staggering blow to their limited export capacity and growing trade ties with the U.S.
The tariffs target high-value sectors:
- Automotive: Germany’s car exports could see a dramatic fall, with companies like BMW and Volkswagen reeling from the impact.
- Machinery and Engineering: Italian and French industrial exporters are anticipating layoffs and slowed production.
- Luxury Goods: French fashion and wine industries, along with Italy’s luxury brands, are likely to be hit hard by diminished U.S. demand.
Interestingly, Russia, Ukraine, Belarus, and a few Balkan nations remain exempt from the new tariff regime. Analysts speculate that this selective targeting is part of Trump’s broader foreign policy posture, possibly aimed at redefining alliances and economic dependencies.
The European Commission in March shared its readiness to retaliate U.S. tariffs and potential legal action at the World Trade Organisation (WTO). Meanwhile, business lobbies on both sides of the Atlantic urge de-escalation before the tariffs take permanent root.
