Higher tariffs, or import taxes, on European goods mean sellers in the U.S. would have to either increase prices for consumers — risking loss of market share — or swallow the added cost in terms of lower profits. The higher tariffs are expected to hurt export earnings for European firms and slow the economy.

European companies face challenges with a new U.S. trade deal involving 15% import tariffs on EU goods. Key industries, including automotive and alcohol, experience stock dips, fearing lost competitiveness and higher costs.

German Chancellor Friedrich Merz has warned that the compromise reached in the tariff dispute between the European Union and the United States will severely impact Germany's export-oriented economy. "The German economy will suffer significant damage from these tariffs,