Global Trade Tensions Escalate with U.S. Tariffs: Impact on Industries

U.S. import tariffs announced by President Trump are causing concerns among global businesses, as they pass on increased costs to consumers. Companies like Ahold Delhaize and Siemens Energy foresee price hikes, while European steelmakers urge retaliation. The tariffs threaten a global trade war, affecting various industries.

Businesses worldwide are navigating a landscape of uncertainty as U.S. President Donald Trump's tariffs on aluminum and steel take effect. Major companies, including Ahold Delhaize and Siemens Energy, have indicated these tariffs will raise consumer prices as they transfer costs onto customers.

This move has sparked fears of a global trade war, prompting European Union trade ministers to convene a video conference meeting. A response is anticipated after European Commission President Ursula von der Leyen admonished that actions against the EU would not go without a reply.

European steelmakers, such as voestalpine, are calling for immediate countermeasures and negotiations from the EU, worried about a possible influx of low-cost steel as a consequence of the tariffs. Amidst these tensions, European equities have shown resilience, but analysts warn of potential earnings hits if tariffs persist.

(With inputs from agencies.)