Trump's EU tariffs: impact on the euro, Spanish exports and US companies

 

The announcement of the president of USA Donald Trump has triggered an in-depth analysis of its potential economic consequences. iBanFirst, company specializing in international payments, has examined how this decision could affect the euro, Spanish exports and the strategies of the American companies in Europe.

 

Resilience of the Euro to Tariffs:

 

Contrary to expectations, The euro has maintained its strengthThis phenomenon is attributed to the inflow of capital into European stocks, which are at a 33% discount compared to US stocks. In addition, the rise in European bond market yields, a traditional indicator of a strong currency, continues to support the stability of the euro.

 

Challenges for Spanish Exporters:

 

Tariffs represent a significant obstacle for Spanish exporters, whose trade with the United States has grown steadily in recent years. Spanish exports to the US have experienced an increase annual growth of 6,01%, from $17.100 billion in 2018 to $22.900 billion in 2023. In 2024, exports reached approximately $21.300 billion, according to the U.S. Census Bureau.

 

At present, The United States is the sixth largest destination for Spanish exports, representing around 5% of the total. However, the new tariff structure could limit the access of Spanish products to the US market, affecting their competitiveness and profitability.

 

 

With the new tariff structure, Spanish exporters could face greater
barriers to access to the US market

 

Impact on American Companies in Europe:

 

The tariffs also hurt American pharmaceutical companies that manufacture in Europe, especially in Ireland, to optimize your tax burdenThis strategy has been key to the European trade surplus. According to the French Ministry of Economy, the United States is Ireland's largest export market, absorbing 30% of its products.

 

"This measure could force US companies to reconsider their supply chains and seek more favorable locations," noted an analyst at iBanFirst.SingaporeFor example, it could become an attractive destination for production, as it is not affected by US tariffs."

 

Possible Reconfigurations in Supply Chains:

 

Trump's decision could trigger a Reconfiguring global supply chainsAmerican companies could move their production to countries with more favorable tariff policies, which would have a significant impact on European and American industry.