European chemical industry warns of competitiveness risks despite US trade deal

The European chemical industry has expressed mixed reactions to the newly announced EU-US deal on tariffs and trade, warning that the agreement could still weigh on competitiveness despite averting a full-scale trade conflict.

The European Chemical Industry Council (Cefic) stated that it takes note of the agreement but emphasized that additional US tariffs on European exports could threaten to erode the sector’s global position. “While the deal appears to have averted the worst-case scenario, the additional US tariffs on European exports risk further eroding the competitiveness of the EU chemical industry,” Cefic said, urging swift implementation of the recently published Chemical Industry Action Plan.

Germany’s chemical association VCI also welcomed the de-escalation but emphasized that the agreed tariffs remain “too high.” Executive Director Wolfgang Große Entrup likened the outcome to “being grateful for a storm when expecting a hurricane,” noting that further escalation was avoided but at a significant cost. He called on the German government to act “more consistently” to offset the added burden for exporters.

Both associations highlighted the need for further negotiations to reduce chemical tariffs and secure more predictable trade conditions. Cefic described the inclusion of some chemicals in a potential “zero-for-zero tariff” arrangement as an encouraging step, while VCI urged that lower tariffs would help enable the reindustrialization and transformation of industries on both sides of the Atlantic.