US tariffs\’ effects differ across EU.

EU Faces a New U.S. Tariff Assault

On Sunday, President Donald Trump unveiled a comprehensive tariff plan that will place a 15‑percent duty on all 27 European Union member states. While the UN’s OECD has cut its global growth forecast, the EU’s trade corridors are bracing for a shock that will hit different economies to varying degrees as the duties take effect on August 1.

Germany: The Industrial Powerhouse

• Exports to the U.S. – Germany’s goods that cross the Atlantic: cars, steel, chemical products, and machine tools total $161.2 billion in 2024.
• U.S. Market Share – The United States accounts for 10.5 percent of German exports, a 23 percent slice of Mercedes‑Benz revenue, and a supply line for SUVs built in America.
• Sector Impact – Any tariff reprisal would strip the German economy of 1.0 percent of its GDP, according to the German central bank.

Ireland: The Pharma & Tech Hub

• Surplus with the U.S. – Ireland’s largest trade surplus in the EU amounts to $86.7 billion, with over a quarter of its goods destined for America.
• Pharmaceutical Giants – Pfizer, Eli Lilly, and Johnson & Johnson locate their patents in Ireland to leverage the 15 percent corporate tax, versus the 21 percent U.S. rate.
• Tech Headquarters – Apple, Google, and Meta host their European headquarters in Ireland, attracted by the same favorable tax structure.
• Export Share – Pharmaceuticals comprise 22.5 percent of EU exports to the U.S., a sector with several major U.S. investment announcements.

Italy & France: Mid‑Level Exposure

• Italy – Surplus of $44 billion; automotive concerns for Stellantis (Fiat & Peugeot) have halted forecast revisions.
• France – Surplus of $16.4 billion; aerospace and luxury goods are heavily exposed. Aeronautics, LVMH, and Airbus generate a quarter of their revenue in the United States.
• Food & Wine – Both countries’ food and wine industries risk losing U.S. customers if tariffs inflate prices.

Austria & Sweden: Smaller Surpluses

• Austria – U.S. surplus: $13.1 billion.
• Sweden – U.S. surplus: $9.8 billion.

The OECD’s cut in global growth forecasts adds a backdrop of economic uncertainty, while the United States remains the largest export market for the EU’s trade surplus of $235.6 billion. China holds the second‑largest surplus, but the EU’s collective exposure to U.S. tariffs will likely reshape its trade architecture in the months ahead.