Eastern European economies, along with the rest of the EU, face a new challenge after Donald Trump announced sweeping tariffs set to take effect on August 1.

The measure, confirmed in a letter published on his social network Truth Social, will apply to all products exported to the United States, regardless of existing sector-specific duties. 

The potential impact is massive. Since the fall of communism, the region has built much of its growth on free trade and open markets. Now, with this sharp protectionist turn, entire industries risk losing competitiveness. 

The automotive industry is among the hardest hit. Germany, which leads vehicle exports to the United States with more than €157 billion in 2023, is particularly exposed. Pharmaceuticals also face heavy losses: in Germany, 23% of medicines produced are sold in the U.S., while France, Spain, and Ireland show similar levels of dependence. 

Industrial and technology exports are equally vulnerable. Heavy machinery and advanced tech, key drivers of European exports, will become more expensive in the U.S. market.

Beyond weakening competitiveness, the new tariffs raise fears that some companies might relocate production to the United States to avoid the added costs. 

Food and consumer goods are also at risk. In Spain, exports of household appliances and electrical equipment—along with olive oil and wine—rank among the most exposed categories.

Mechanical and electrical machinery alone account for over €4 billion in shipments to North America. Olive oil generates €1.2 billion annually, while wine exports, long a strength for Spain, already dropped 20% in April compared with last year. 

The European Union’s response

From Brussels, European Commission President Ursula von der Leyen insists on keeping negotiations open. She stressed the need to reach a deal before August 1 to avoid a direct clash with Washington.

But Trump’s message left little room for compromise: any retaliatory tariffs from the EU would be met with an additional 30% increase on top of the new duties. 

This leaves Europe in a difficult position. Retaliation could escalate the trade conflict and further damage exports. Backing down, however, would mean accepting conditions unilaterally imposed by Donald Trump, weakening the EU’s role as a defender of free trade. 

For now, Eastern European economies—and the continent as a whole—watch nervously as one of their main growth engines, exports to the United States, faces serious risks under Trump’s new protectionist wave.