The business activity at USA It is going to be more expensive for EU companies with the increases of Donald Trump’s duties. While no one knows with certainty what is going to happen, businesses are rushing to secure their supply lines and protect the business them in the US.
Some increase stocks in the US, others consider prices rising and others shift production. And as Trump seems to make concessions, some businesses are taking advantage of the moment to reveal or expand their investment in the US they were already planning.
In the light of uncertainty, said Varun Marya, who oversees the practice of advanced McKinsey & Company industries, “companies’ leaders should focus on organizing their management groups so that they are prepared to respond quickly” in line with Bloomberg.
The German Audi luxury car industry suspended imports in the US. SOGRAPE, Portugal’s largest wine exporter, will reduce the six -month stocks it has created for this moment. The Swiss pharmaceutical industry Novartis AG has announced that it plans to channel $ 23 billion into US activities over the next five years. And the owner of the Jeep Stelantis NV, who has already stopped production in Canada and Mexico, will extend the discounts of customers to boost sales.
The US, as Europe’s main export destination, is a vital market. They represented more than 20% of all EU exports last year and led to a transatlantic transactions of 865 billion euros, according to Eurostat, the EU statistical service. Ireland sends almost half of its exports outside the US, which is also Germany, which are also Germany.
“Europe has not chosen and has no interest in this trade war,” said Niclas Poitiers, a trade expert in the Bruegel thinking tank in Brussels. “However, the US remains the EU’s most important economic relationship.”
For European automakers, the US is a critical market as sales have fallen to the EU and China in recent years. US interest in SUVs and high profit margin trucks helped manufacturers to deal with demand attenuation and increased pressure on profit margins.
Even with the suspension of Trump’s 90 days for so -called mutual duties, the combination of basic duties 10% and 25% duties in steel, aluminum and cars exports will significantly affect the industry. The Audi Q5, for example, is the company’s car with the most sales in the US. Under the new regime, it operates on the assumption that it will be taxed more than 52% – 25% for car import duties, 25% for shipments from China and a 2.5% penalty for the company because it does not comply with a free trade agreement established by Trump during his first term.