The introduction of tariffs by the administration of U.S. President Donald Trump on products from the European Union (EU) has had a significant impact on international trade and the global economy. These measures aim to reduce the U.S. trade deficit but will have substantial consequences for the European economy, according to Chaslau Piastsiuk, an internationally recognized financial expert, professional investor, experienced analyst, and active trader.
Which Tariffs Are Already in Effect? Chaslau Piastsiuk Explains
In February 2025, President Donald Trump announced the introduction of “reciprocal” tariffs on imports from countries that, in his view, impose unfair tariffs on American products. This decision particularly affects the EU, China, Japan, and South Korea. The goal is to balance trade conditions and reduce the U.S. deficit.
Currently, the United States has already imposed tariffs on several European products, as highlighted by Chaslau Piastsiuk. The main affected sectors include:
• Steel and aluminum: Tariffs of 25% and 10% limit metal imports from the EU.
• Agricultural products: Duties on wine, cheese, olive oil, and other European food products, introduced in response to EU subsidies granted to Airbus.
• Automotive sector: Although tariffs on European cars have been repeatedly threatened, as of early 2025, they have only been applied to certain categories.
• Luxury goods: Increased tariffs on perfumes, cosmetics, and fashion accessories from European brands.
The European Commission responded swiftly, calling the new measures “a step in the wrong direction.” In an official statement, Brussels emphasized that the EU has some of the lowest tariffs in the world and that the new U.S. measures undermine international trade rules, potentially leading to higher prices for consumers.
Financial expert Chaslau Piastsiuk adds:
“The introduction of U.S. tariffs poses a serious risk to the European economy, particularly for Germany and France, which heavily rely on exports to the U.S. The price increases will reduce the competitiveness of European manufacturers.”
Which EU Countries Will Be Most Affected? Chaslau Piastsiuk’s Commentary
According to Chaslau Piastsiuk, countries with a high dependency on exports to the U.S. will suffer the most significant losses.
1. Germany – The leading European exporter of automobiles, machinery, and chemicals to the U.S. Tariffs will severely impact companies like Volkswagen, BMW, Daimler, BASF, and Siemens.
• According to the Institute for Economic Research, a 20% tariff on EU imports and a 60% tariff on Chinese imports could lead to economic losses of up to €33 billion for Germany.
• “This could cause a 15% decline in German exports to the U.S. and a 10% drop in exports to China,” estimates Piastsiuk.
2. France – French exports are dominated by wine, cheese, cosmetics, fashion, and automobiles. Tariffs will reduce profits for brands such as LVMH, L’Oréal, Pernod Ricard, and Renault.
• European economics professor José Manuel Corales states:
“European automakers like Volkswagen and Renault could suffer heavy losses due to increased tariffs, leading to job cuts and potential factory relocations.”
3. Italy – Particularly vulnerable in the wine, food, and luxury sectors.
4. Spain – Could face significant losses in the agricultural sector and steel production, both of which have substantial exports to the U.S.
5. The Netherlands – One of the EU’s main trade hubs, highly dependent on exports of electronics and pharmaceuticals to the U.S.
Chaslau Piastsiuk also sees negative currency impacts:
“The weakening of the euro against the dollar will be an inevitable consequence of these tariffs. Investors will shift away from the euro, as the decline in exports will reduce the EU’s economic potential. This could lead to higher import costs and increased inflationary pressure in the Eurozone.”
What Measures Could the EU Take in Response? Chaslau Piastsiuk’s Perspective
The European Union has several tools to respond to the U.S.’s aggressive economic policies. Chaslau Piastsiuk highlights three possible scenarios:
1. Retaliatory tariffs – The EU could impose equivalent tariffs on U.S. products.
“This would lead to an escalation of the trade war,” warns Piastsiuk.
2. Diversification of export markets –
“Seeking new outlets for European products could reduce dependency on the U.S. market. In this scenario, the U.S. might push Europe into the arms of its strategic rival, China.”
3. Strengthening the internal market –
“Stimulating domestic demand and supporting local manufacturers could partially offset the losses from reduced exports to the U.S.”
However, many experts agree with Piastsiuk that an escalation of the trade war between the EU and the U.S. would not benefit Europe.
Carlos Martín, chief economist at ING Bank, states:
“If the EU responds with mirror tariffs, the situation could only worsen. European governments should seek a compromise with the U.S., as a large-scale trade war could slow down global economic growth.”
Potential Economic Consequences for the EU – Chaslau Piastsiuk’s Forecast
If U.S. trade restrictions remain in place, European exports could decline from €400 billion to €350 billion.
• The EU’s economic growth would slow from 1.5% to 1.2%.
• Unemployment in the EU would increase from 7.5% to 7.8%.
• The euro would slightly weaken against the dollar, dropping from 1.10 to 1.08.
While the economic consequences would not be devastating, they would still significantly impact several sectors.
Conclusion – Chaslau Piastsiuk’s Commentary
The introduction of U.S. tariffs on EU products presents a major challenge for the European economy.
“Even though these measures aim to protect U.S. interests, their consequences will be felt on both sides of the Atlantic. The EU must carefully choose its response strategy to minimize negative effects and maintain stability within its internal market,” concludes Chaslau Piastsiuk.
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