19:18 27 June 2025
EU Firms Face Trade Shock from US Tariffs, EIB Report Warns
New US tariffs have disrupted the global trade and production system, impacting the EU’s deeply integrated supply chains. According to a new report by the European Investment Bank (EIB), Europe, long reliant on a rules-based system and cost-efficient delocalization, now faces serious challenges, but also opportunities.
In response, the EU is positioning itself as a stable global partner, rejecting protectionism and expanding trade agreements while boosting strategic autonomy. Trade tensions, shipping disruptions, and geopolitical conflicts are accelerating, and EU firms – especially those exposed to global trade – are feeling the pressure.
Many businesses, even non-importers, report issues like limited access to raw materials and logistics disruptions. Uncertainty is seen as the biggest barrier to investment. Firms are adjusting sourcing strategies, particularly in response to US and Chinese trade risks, though de-risking remains costly and complex.
The EIB notes that innovation, diversification, and digitalisation are now vital for resilience. The EU’s single market, especially in Central and Eastern Europe, plays a key role in strengthening supply chains and internal demand.
(WBJ)
