From Autos to Absinthe: Europe’s Most Vulnerable Industries in Trade War

Europe’s industrial backbone is fracturing under tariff pressures, with these five sectors facing existential threats:

1. German Autos (23% of exports)

• BMW cutting 5,000 Tempelhof jobs

• VW ID.7 production delayed over Chinese battery tariffs

2. French Wine & Spirits ($16B industry)

• US tariffs make €100 Bordeaux bottles unsellable

• Absinthe exports to China down 73%

3. Italian Luxury (38% global market share)

• Gucci’s US sales growth turns negative

• Prada postponing Miami Design District expansion

4. Dutch Semiconductors (ASML fallout)

• 22% revenue drop from China restrictions

• Texas poaching 400 Eindhoven engineers

5. Spanish Olive Oil (“Liquid Gold” crisis)

• US duties push premium EVOO to €9/liter

• 30% of Andalusian growers face bankruptcy

Worker Impacts:

• 48,000 auto layoffs in Bavaria

• Champagne cellars operating at 60% capacity

• Tuscan leather workshops closing after 150 years