US President Donald Trump has threatened to impose a 50% tariff on European Union goods starting June 1, sending European stocks tumbling. The US is the EU’s largest export partner, accounting for 20.6% of exports in 2024.
The EU’s most exported group to the US are medicinal and pharmaceutical products, motor vehicles, and aircrafts and associated equipment. Germany, Ireland, and Italy are the top three exporters to the US, with €161 billion ($182.62 billion), €72 billion, and €65 billion worth of goods sold respectively.
Pharmaceutical companies such as Novo Nordisk, Bayer, Roche, and Novartis could be affected by the tariffs. The US was also a significant market for EU car exports, accounting for 22% of EU vehicle exports in value. Automakers like Mercedes-Benz, Stellantis, and Volvo Cars have pulled their 2025 financial guidance due to uncertainty caused by US trade policy.
Airbus is France’s second-largest exporter and delivers some 12% of its jets to the US. The company is supplied by major players such as CFM International, Safran, and GE Aerospace.
Tariffs could also impact EU exports of engines, motors, and motor vehicle parts, including companies like MTU Aero Engines and Steyr Motors. European alcohol producers like Heineken, Diageo, and Carlsberg could also be affected, with the US spirits sector investing heavily in Europe.
Finally, EU cosmetics exports to the US were worth $10.47 billion in 2024, with French brands like L’Oreal making up a significant portion of these sales. The luxury sector is also highly exposed to US tariffs, with companies having limited ability to move production to the US.
Source: https://www.reuters.com/business/autos-transportation/eus-top-exports-most-vulnerable-trumps-new-tariffs-2025-05-23