Pharmaceuticals, automotive: the most threatened European sectors
German cars are among the most exported to the United States. This is one of the sectors that will suffer the most from the tariff increase announced by Donald Trump on Saturday.
Key sectors of the European economy are likely to be hit hard by the 30% customs duties announced on Saturday , which are due to come into force on 1 August for products from the European Union (EU).
US President Donald Trump justifies these tariffs by citing a trade imbalance between the United States and the EU, to the detriment of Americans. The US-EU trade relationship represents 30% of global trade, with €1.68 trillion worth of goods and services exchanged in 2024, according to the European Commission.
Pharmaceuticals Pharmaceutical products are the most exported goods from Europe to the United States (22.5% of the total in 2024 according to Eurostat) and are currently exempt from customs duties in the USA.
Several pharmaceutical groups have already announced investments in the United States to strengthen their production there, while asking the EU to relax its regulatory framework.
The United States is also a "key market" for the European automotive industry, which exported nearly 750,000 cars there in 2024, worth €38.5 billion, according to the European Automobile Manufacturers' Association (ACEA).
Germany produces the majority of these exported cars, through the Audi, Porsche, BMW and Mercedes brands.
Aeronautics: Current US tariffs are already weighing heavily on the sector. Since March 12, a 25% customs surcharge has applied to imports of aluminum and steel, key materials in the aeronautics industry. And all products (including aircraft) imported from Europe must pay a 10% surcharge.
Airbus had hoped for a reset, which was in fact being negotiated this week. Before Trump's thunderous announcement on Saturday dashed those hopes.
Luxury Goods The luxury sector has remained relatively quiet in its reactions in recent months, but the impact of the tariffs could be serious. The French group LVMH, the world's No. 1 luxury goods company, generates a quarter of its sales in the United States, and its CEO, Bernard Arnault, had called on European leaders to resolve trade tensions "amicably," even saying he was "in favor" of "a free trade zone" with the United States.
For its part, Hermès, known for its Birkin bags and silk scarves, had indicated that it would "fully" offset the 10% customs duties already implemented in April by Donald Trump by increasing its sales prices in the United States. But raising prices by 30% is another matter...
Cosmetics: French and Italian perfume and cosmetic brands are widely sold in the United States. In 2024, L'Oréal generated 38% of its annual revenue in the country. In April, the company mentioned the possibility of relocating "part" of its production to the United States.
Food and Wine: Customs duties of 30% are a "death blow" to "Made in Italy" food, the main Italian agricultural union, Coldiretti, reacted on Saturday, outlining a possible impact on consumer prices that could reach up to 45% on cheese, for example.
On the French side, the United States represents the largest international market for the wine and spirits sector, with a total value of €3.8 billion in 2024, according to their federation (FEVS). "It would be a catastrophe for the entire sector, in a situation where wines and spirits are already facing enormous difficulties," declared Jérôme Despey, head of the viticulture branch of the FNSEA union, on Saturday.
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