- Impact of US Tariffs: The import tariffs announced by President Trump are projected to reduce US exports by 20% and Dutch imports and exports by approximately 1%, with more significant declines in certain manufacturing sectors, such as machinery and vehicles.
- Sectoral Benefits and Adjustments: While Dutch manufacturing sectors may see decreased production, Dutch service providers in telecommunications and machinery leasing are expected to benefit from higher US import tariffs on goods, with a projected increase in service production of around 3%. However, short-term adjustment costs may arise from necessary investments and resource redistribution.
- Limited Effects of Retaliation: A potential EU retaliatory tariff of 10% on US goods would have minimal impact on US trade and only slightly affect Dutch and European imports and exports, leading to shifts in production patterns within Europe and greater trade with other global markets. The high level of policy uncertainty in the US raises questions about future international reactions, which will be further analyzed in upcoming economic reports.
Source Taxence
