Europe’s industrial backbone is fracturing under tariff pressures, with these five sectors facing existential threats:
1. German Autos (23% of exports)
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BMW cutting 5,000 Tempelhof jobs
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VW ID.7 production delayed over Chinese battery tariffs
2. French Wine & Spirits ($16B industry)
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US tariffs make €100 Bordeaux bottles unsellable
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Absinthe exports to China down 73%
3. Italian Luxury (38% global market share)
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Gucci’s US sales growth turns negative
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Prada postponing Miami Design District expansion
4. Dutch Semiconductors (ASML fallout)
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22% revenue drop from China restrictions
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Texas poaching 400 Eindhoven engineers
5. Spanish Olive Oil (“Liquid Gold” crisis)
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US duties push premium EVOO to €9/liter
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30% of Andalusian growers face bankruptcy
Worker Impacts:
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48,000 auto layoffs in Bavaria
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Champagne cellars operating at 60% capacity
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Tuscan leather workshops closing after 150 years
