The Immediate Impact

European exporters across key sectors—automotive, machinery, aerospace, and consumer goods are preparing for a sharp rise in costs and potential disruptions in their access to the US market.

Markets have already responded with unease:

• FTSE 100 down 0.2%
• German, French, and Italian indexes down around 0.5%

Business confidence is clearly under pressure, even before the official announcement.

Europe’s Divided Response

While France’s industry minister Marc Ferracci has called for restraint and negotiation, “Europe will not escalate tensions”, others are urging a more assertive stance.

European Central Bank president Christine Lagarde called it a “march to independence,” urging Europe to “take our destiny into our own hands.” Meanwhile, ECB policymaker Olli Rehn has pushed for the EU to prepare “proportionate countermeasures.”

The European Commission has signaled it will present a formal response within two weeks.

What Exporters Should Do Now

For exporters, the next 48 hours will be critical. Here’s what to prioritise:

• Review trade contracts for tariff clauses and risk exposure
• Engage with US buyers to manage expectations and pricing
• Diversify markets and logistics to mitigate concentration risk
• Monitor EU response tools for potential support or retaliation mechanisms

A Turning Point for EU Trade Strategy?

Trump’s justification for the tariffs—equalising trade imbalances and targeting non-tariff barriers—marks a broader shift toward protectionism. For Europe, this may be more than a policy challenge. It could be a catalyst for rethinking export resilience, accelerating diversification, and strengthening strategic autonomy in trade.

Export Unlocked will continue to track the developments and unpack what they mean for European businesses.

Stay with us for real-time analysis, exporter guidance, and policy updates.

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