London /Marseille, France, August 2: European businesses are grappling with the impact of U.S. President Donald Trump’s new 15% tariff on most European exports, which came into force on Friday, prompting shipment delays, price hikes, and growing fears of supply chain disruption.
The tariffs, part of a sweeping overhaul of U.S. trade policy, mark the highest duty levels imposed by Washington on European goods since the 1930s. They are also the latest step in Trump’s effort to address long-standing U.S. trade imbalances and declining manufacturing.
“Companies are waking up to the fact that we’re dealing with historically higher tariff rates,” said Andrew Wilson, Deputy Secretary General of the International Chamber of Commerce. “The complexity of doing business with the U.S. has gone to levels nobody could have imagined.”
The chamber is reporting widespread shipment delays and firms across sectors reassessing supply chain strategies. Trading with the U.S. has become “hellishly more difficult,” Wilson added.
Widespread Impact Across Europe
In Germany’s Moselle Valley, winemaker Johannes Selbach said the tariffs are damaging for both European exporters and American importers. “The tariffs hurt the Americans and they hurt us,” he said, surrounded by crates of wine marked for the U.S. market.
Luxury brands have more flexibility to absorb or pass on added costs, but small and mid-sized producers are struggling. Even large multinationals such as Procter & Gamble and Adidas have announced price increases in the U.S. to offset the tariff burden.
Reuters’ global tariff tracker shows that at least 99 out of 300 monitored companies—most from Europe—have raised prices due to the tariff war.
No Quick Fixes
For some industries, relocating production is not an option. Champagne producer Hugo Drappier pointed out that the sparkling wine can only legally be produced in a specific region of France.
“It’s an industry that employs a lot of workers who can’t be relocated. We don’t have the option of moving champagne vines elsewhere in the world,” he said. Orders have been delayed as buyers wait for clarity, though he noted the final 15% rate is lower than the previously threatened 30%.
Adapting to a New Trade Landscape
Laurent Cohen, CEO of French perfumery Corania, said he is looking for new markets while trying to maintain business in the U.S., which accounts for 25% of his firm’s sales.
“With 15% customs duty on our products—which are affordable perfume products—we will now have to show immense ingenuity to keep on going in the U.S. market,” Cohen said.
While the tariff rate for Europe is lower than those imposed on countries like Mexico, Canada, India, and Vietnam, producers say the global divergence in U.S. trade policy is adding confusion and complexity.
Trump’s administration argues the tariffs are necessary to rebalance trade, revive domestic industry, and bring jobs back to the U.S. But for many across Europe, the new tariff reality is already forcing tough decisions—and testing the resilience of transatlantic commerce.
