Source: People’s Republic of China – State Council News
As Washington presses ahead with additional tariffs on products from the European Union (EU) and beyond, European officials and experts are urging the diversification of trade markets to mitigate the damage that such coercive financial statecraft is inflicting on global supply chains.
TARIFF GAME SETTING OFF CHAIN REACTION
U.S. President Donald Trump announced Saturday that his administration would impose 30 percent tariffs on EU and Mexican exports, arguing that bilateral trade had long been unbalanced and lacked reciprocity.
Trucks wait to enter the Container Terminal Tollerort in Hamburg, Germany, May 28, 2025. (Xinhua/Zhang Fan)
The Irish Sinn Fein leader Mary Lou McDonald described the tariff threat as “volatile” and “not helpful at all.” “That poses a challenge for Ireland, for Europe, for the world,” she told Xinhua at a press conference in London.
Countries across Europe have been warning about the impact of the seemingly unrelenting tariff assaults on their economies.
The Bank of Slovenia estimated that U.S. tariffs could indirectly disrupt the broader European value chain and impact about 15,000 jobs in Slovenia, a significant number in a country of just 2.1 million people.
The Bank of England also said in its latest Financial Stability Report that the global economy faces rising downside risks, citing U.S. tariffs, and despite a new trade agreement between Britain and the United States in May, a further escalation in trade disputes globally could amplify financial stress and drag on economic growth in Britain.
Companies of all sizes, from those exporting to the U.S. to manufacturers heavily reliant on global supply chains, are feeling the strain that the tariffs are placing on their operations.
Neb Chupin, founder of Croatia’s Hermes International, a successful fig jam producer in the U.S. market, said, “With 10 percent tariffs, we are losing about 20,000 U.S. dollars a week. What would happen with 30 or even 50 percent tariffs? I cannot even sleep at night as the situation is very unstable.”
With 40 percent of exports going to the U.S., Finland’s pharmaceutical industry could also be severely affected by potential U.S. tariffs. Johanna Sipola, deputy CEO of Keskuskauppakamari, or the Finnish Chamber of Commerce, called the tariffs “unrealistic” and warned that the greater risk is the uncertainty they create.
“If the tariffs were implemented, the repercussions for international pharmaceutical production would be significant. The industry’s delivery chains are unusually global, and even minor disruptions can trigger substantial changes in medicine prices and demand,” Sipola said.
Beyond the immediate effects, the high-stakes tariff game is setting off a chain reaction across global supply chains and geopolitical dynamics.
Gavran Igor, an economic analyst from Bosnia and Herzegovina, said that the longer-term impact of the tariffs could prove even more damaging for Balkan manufacturers that are integrated into EU-based industries, particularly automotive supply chains.
Czech Republic’s Finance Minister Zbynek Stanjura said that exports to the United States account for less than 3 percent of the country’s total exports. However, the country would also be indirectly affected through its European partners who purchase Czech goods and components.
STRENGTHENING COOPERATION WITH MULTI-PARTNERS URGED
Inevitably, even countries with modest trade ties to the world’s largest economy can still feel the ripple effects of Washington’s unpredictability. In response, experts recommend that European nations broaden their trade partnerships, especially with China, Southeast Asia and other regions.
“Europe must, in the long term, become more independent from the American market. A joint free trade zone with the ASEAN countries and the rapid ratification of the agreement with Mercosur are urgently needed,” Dirk Jandura, president of the Federation of German Wholesale, Foreign Trade and Services, said in a statement after Trump’s new tariff announcement.
Mario Boselli, chairman of the Italy China Council Foundation, said that the shifting dynamics might prompt Europe to reconsider its external economic strategy. In his view, strengthening cooperation with China is a “highly strategic choice.”
“If economies, like the EU, China, the United Kingdom, Brazil and India, keep global trade open, the U.S. tariffs’ impact on global supply chains will be lower. That’s the opportunity,” said Carlo Altomonte, associate professor of the Department of Social and Political Sciences of Bocconi University in Milan.
Martin Geissler, Partner at the management consultancy Advyce & Company, echoed the suggestions by sharing Germany’s auto industry as an example. “German automakers have often not yet recognized the growth prospects that exist in Africa and many emerging countries,” Geissler said, contrasting this with China’s strategic engagement with multi-partners.
Bernardo Mendia, Secretary General of the Portugal-China Chamber of Commerce and Industry, is leading a Portuguese delegation to the ongoing China International Supply Chain Expo in Beijing.
A key factor driving Portugal’s participation this year, in his words, is the rise of protectionism, logistical disruptions and geopolitical shifts. In the face of these challenges, China offers a distinctive platform to develop innovative solutions, business models, and collaborative partnerships, he said.
Looking ahead, experts believe that Washington’s trade policies could ultimately backfire on the U.S. economy itself.
“The U.S. needs many of our industrial products, which cannot be easily replaced in the short term. This allows German manufacturers of these goods to largely pass on the tariffs in their prices to the detriment of the U.S. economy,” said Juergen Matthes, head of International Economic Policy, Financial and Real Estate Markets Research Unit at the German Economic Institute.
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