European market: Difficult export problem at the end of the year

Currently, US tariffs on European goods on most products are 15%. This is lower than mid-year forecasts, but still puts pressure on European exporters. This pressure could increase towards the end of the year. Meanwhile, Asian goods, especially from China, are also changing direction, pouring more into the European market, creating double pressure for businesses.

According to Mr. Carsten Brzeski, economist of multinational bank ING, US tariffs are really a factor that significantly impacts European exports not only at the end of this year but will also spread into next year.

Most recently, the German car company Volkswagen announced that the increased costs from tariffs imposed by the US could cost the company an additional 5 billion euros this year. In the first three quarters of the year alone, tariffs have reduced the company's profits by 58% compared to the same period last year.

"I think the US tariffs have really had a negative impact on the European export sector. We see the automotive, pharmaceutical and manufacturing sectors in general suffering from the US tariffs," said Carsten Brzeski, economist at ING Bank.

It is still too early to assess the full extent of the damage, as many businesses are currently “absorbing” the tax by reducing their profit margins. But I think that by the end of this year and into next year, we will see more clearly the full impact of the US tariffs on the European export sector.

But European businesses are under double pressure. Exports are subject to high tariffs, while within the region they must compete with Chinese goods – high quality but sometimes cheaper than domestic goods.

Mr. Truong Phi - Auto Show in China shared: "Europe is one of our top priority markets. Together with emerging markets, it has great potential for future growth."

Mr. Carsten Brzeski - Economist of ING Bank commented: "Because Europe is a very large, unified market, we are currently witnessing a wave of goods flooding in from China, possibly at much cheaper prices.

Faced with the threat of Chinese goods flooding the market, a new wave of protectionism is emerging in Europe. We have seen the EU consider imposing higher tariffs on imported steel - that is a typical example."

And as experts have warned, with the EU’s trade deficit with China reaching around 304.5 billion euros in 2024, the year-end export problem is even more difficult. European businesses are not only under pressure from US tariffs but also facing fierce competition from Asia. And if they do not adjust their strategies now, the pressure could be even stronger next year.

Source: https://vtv.vn/thi-truong-chau-au-nan-giai-bai-toan-xuat-khau-cuoi-nam-100251104053833696.htm