Some European companies wary of expanding in US amid tariff chaos

Written by Giulio Biovakari, Christophe Stitz, Victoria and Al -Darssi

Milan/Frankfurt/Berlin (Reuters) – President Donald Trump’s approach to definitions causes some smaller European companies to wonder about the benefits of expansion in the American market – a sign of how difficult it is to move in trade in the world’s leading economy.

By placing fees on everything from steel and cucumber to cars and sandals, Trump aims to push foreign companies to transfer investment to the United States, build new factories and create thousands of American jobs.

While the main companies of the car and medicine sectors rushed to announce expansions or say that they are thinking about this, the stream of advertisements, back and exemptions have left some smaller companies a war of commitment.

The euro Group’s scores in Italy are not currently paying any tariff for the circles and the fold that it provides to American car customers, including Ford and Granur Motors, from its factory in Mexico because it complies with the current import rules.

But even if it is, the transfer of production to the United States will present it to the tariffs in a special place of steel that the company uses in auto parts.

He said: “Putting the potential definitions of the United States … does not necessarily mean that it can compensate for additional costs and the availability of low steel,” adding that the costs of US employment, which reaches six times higher than Mexico, was also a problem.

The German company EBM-PAPST has placed the German company EBM-PAPST on the establishment of a third American factory or the expansion of one of its current American sites due to the current developments, including the risk of raising the definitions of the American recession.

“If there is an economic shrinkage in the United States, the demand may develop differently as a result,” said CEO Claus Jesdorver.

SMES is the backbone of many economies, including Italy and Germany, both European Union members and main exporters of the United States.

Since they have financial stores smaller than their blue peers, they may interact with the risks of new trade more quickly than major companies.

“In contrast to Donald Trump’s hopes, protectionism will not lead to the transfer of more German companies to the United States and creating job opportunities there,” said Mark Tinbig, head of the DMB Association, which represents small and medium -sized companies in Germany.

DMB said in separate comments that a handful of small and medium -sized companies, who refused to call it due to the sensitivity of the issue, is also reviewing its American business as a result of Trump’s policies.

Andrew Adir, the group’s commercial policy consultant in North America, said after a trip to the United States earlier this month that some member companies of the German engineering association VDMA postpone purchases.