The consequences of American tariffs will not be the same for everyone, the first in the line of fire is - Ireland

(Patria) - European countries are not all equally exposed to the American market and therefore will not bear the same consequences if President Donald Trump carries out his threats and imposes 30 percent tariffs on the European Union, AFP writes today.

Ireland - the first line of fire

Ireland, with its important pharmaceutical industry, is in the first line of fire along with Germany, for which the US is the main market for cars, steel, and machine tools.

France is less exposed, although it has aeronautical and food companies, as well as producers of wine and luxury goods, who risk losing markets.

The EU as a whole has an annual trade surplus with the US amounting to 235.6 billion US dollars, according to the US Bureau of Economic Analysis (BEA), which prepares reports for the Department of Commerce.

Only China has a larger surplus.

Ireland has the largest surplus among EU member states, 86.7 billion dollars, mainly thanks to the presence of leading American pharmaceutical companies such as Pfizer, Eli Lilly, and Johnson & Johnson.

All of them have settled in Ireland to take advantage of the 15 percent corporate tax benefit, compared to 21 percent in the US.

These companies register their patents in Ireland and sell on the American market, where drug prices are traditionally higher than elsewhere in the world.

Ireland also hosts the European headquarters of American tech giants such as Apple, Google, and Meta, which were also attracted by the Irish tax system.

According to Eurostat, overall, pharmaceutical products account for 22.5 percent of EU exports to the US, with major players announcing significant investments in the US.

Germany's export dependence

Germany, the largest economy in the European Union, is particularly under pressure due to its export dependence - the country has a trade surplus with the US of 84.8 billion dollars, mainly thanks to the automotive, chemical, steel, and machine manufacturing industries.

The US accounts for 23 percent of Mercedes Benz's revenue. Although some revenue comes from SUVs produced in the US for export, there is a risk that this segment could be severely affected if the EU decides to retaliate in a trade war.

The Federation of German Industries (BDI) reacted urgently to Trump's announcement on Saturday, calling on the EU and the US to "quickly find solutions and avoid escalation".

Italy and France in the second row

Italy, with a trade surplus with the US of 44 billion dollars, and France with 16.4 billion, according to US statistics (French data indicate a significantly lower surplus), would be less affected, but some sectors are highly exposed.

In both countries, the food and wine production industries would be significantly affected, as would Spain.

- 30 percent tariffs would be a "catastrophe" for French wines and spirits - said Jerome Despey, head of the viticulture department of the FNSEA union.

Coldiretti, Italy's main agricultural association, announced yesterday that 30 percent tariffs would cost American consumers and Italian food producers around 2.3 billion dollars.

Like Germany, Italy is also concerned about its automotive industry. The Franco-Italian manufacturer Stellantis (especially Fiat and Peugeot) has postponed its forecasts and projections for this year due to uncertainty about tariffs.

French aeronautics and luxury goods sectors are also highly exposed. LVMH, the world's largest luxury goods conglomerate, generates a quarter of its sales in the US.

About a fifth of French exports to the US are in the aeronautics industry, most of which is Airbus.

Austria and Sweden also have trade surpluses with the US amounting to 13.1 and 9.8 billion dollars.