With the July 9th deadline for a new U.S.-EU trade agreement approaching, the possibility of a 50% tariff on all EU goods exported to the United States is becoming increasingly likely.
However, the impact of these tariffs would not be evenly distributed across Europe. The top ten countries most affected account for over 89% of the total EU tariff impact, collectively facing $271.1 billion in tariff costs. The three countries—Germany, Ireland, and Italy—together represent 56.7% of the total EU tariff burden.
The largest EU exports to the U.S. include key sectors such as vehicles, machinery, pharmaceuticals, and aerospace, which make up the majority of EU exports.
Poland's tariff exposure amounts to $7.05 billion, primarily in machinery ($4.05 billion), electronics, and medical devices. “As an emerging manufacturing powerhouse within the EU, Poland is increasingly reliant on U.S. demand. The new tariffs threaten to hinder its export-driven growth model and may require a reconfiguration of transatlantic production networks across Poland’s industrial sector,” states the report.
If these tariffs are implemented, EU products will become more expensive in the U.S., likely resulting in reduced import volumes and increased costs for American businesses and consumers who rely on these goods.
Conversely, U.S. industries in competing sectors—such as car manufacturers, machinery infrastructure, and pharmaceuticals—might benefit from decreased competition from the EU and higher demand for domestically produced goods.
(aj)
SOURCE: Investor Observer