Why it matters:
Trump’s enacted and proposed tariff policies have fueled concerns over a potential trade war, leading European firms to reconsider their long-term investment strategies. Analysts warn that such policies could destabilize global trade and dampen economic growth.
What he's saying:
Marcus Kerber, CEO of Germany’s RWE Group, one of Europe's largest electricity producers, says tariff threats have hindered the company’s investments in U.S. wind and solar energy projects. He stresses that trade policy uncertainty has complicated decision-making for businesses reliant on imports, such as battery manufacturers.
What they're saying:
Economic experts from Goldman Sachs argue that tariffs' unpredictability is more damaging than the tariffs themselves.
Jim Rowan, CEO of Swedish automaker Volvo, raises concerns about the potential impact of a U.S.-Europe tariff dispute.
Jan Rindbo, CEO of Danish shipping company Norden, cautioned that if Europe retaliates with its own tariffs, European businesses may suffer further, with consequences stretching beyond the continent to South America.
Go deeper:
With Trump positioning tariffs as a key economic tool, European companies must navigate an increasingly unpredictable trade environment. As businesses assess the risks, policymakers on both sides of the Atlantic face pressure to establish more apparent trade agreements to prevent further economic disruptions.
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