Trump’s tariff threats are back — this time he’s got his eyes on Europe — with new duties aimed at vehicles, luxury goods, and more, some of the continent’s biggest brands are bracing for impact.
While trade talks drag on and deadlines loom — Polymarket traders think there’s a 71% chance a deal is made before July 9, the new deadline — these are the European companies staring down the barrel of America’s trade war.
Here’s who’s sweating the most.
Automakers: BMW, Mercedes-Benz, Stellantis, Volkswagen, Volvo
Trump’s 25% tariff on imported cars is a direct hit to Germany’s biggest exports. Heavyweights VW, BMW, and Mercedes could be looking at billions in added costs, while Volvo and Stellantis have already pulled their 2025 guidance. Despite building cars on U.S. soil, they’re still deep in the blast zone — and scrambling for cover.
Aerospace: Airbus, MTU Aero Engines, Safran
Airbus sends 12% of its jets to the U.S., and while some assembly happens stateside, tariffs could still clip their wings. Suppliers like Safran and MTU — key players in trans-Atlantic engine production — are caught in the crossfire too, facing major disruption if penalties hit.
Big Pharma: Bayer, Novartis, Novo Nordisk, Roche
Pharma was spared in round one, but nothing’s safe for long. Europe sent $130 billion worth of meds to the U.S. last year. If exemptions fall away, major players like Bayer and Roche could be feeling the pain.
Booze Brands: Carlsberg, Diageo, Heineken
Americans love their European alcohol — nearly $3 billion worth of it. But brands like Diageo, Heineken, and Carlsberg are now on the rocks. New tariffs could send prices (and tempers) sky-high, especially in an industry already hit by shifting regulations.
Fashion & Luxury: Birkenstock, Burberry, Hermès, Kering, LVMH, Moncler
Luxury labels are losing their cool. Stocks for LVMH and Hermès dropped on tariff news, and with about 25% of their revenue coming from U.S. buyers, the stakes are steep. If prices spike, even diehard fans might think twice about that designer bag.
Consumer Goods: Ahold Delhaize, Tala
Dutch retailer Ahold Delhaize gets around half its revenue from U.S. grocery chains. British brand Tala slammed the brakes on its U.S. push entirely, yanking products and freezing growth until the chaos clears. When tariffs kill expansion plans, the chill is real.
Cosmetics: L’Oréal
L’Oréal ships nearly $3 billion in beauty products to the U.S. every year. But if tariffs hit, those silky serums and luxe lipsticks may come with sticker shock. The personal care market is huge — and fragile.
Industrial Parts: DEUTZ, MTU Aero Engines, Steyr Motors
Tariffs on motors and car parts hit deeper than most think. Germany’s DEUTZ and Austria’s Steyr build the guts of countless machines. If these components get taxed, it’s not just Europe that hurts — entire global supply chains could stall out.
