A Crisis of Confidence: EU Industry’s Faith in US Trade Partnership Falters

A profound crisis of confidence is gripping European industry, as its faith in the United States as a stable and predictable trade partner falters. The primary cause is the US’s ever-expanding list of “derivative” goods subject to steel tariffs, a policy that is seen as erratic, unfair, and deeply damaging to business certainty.
The confidence has been eroded by a series of unilateral US actions. The initial imposition of steep tariffs was a shock, but the subsequent creation of a “rolling list” of manufactured goods has been even more corrosive. The belief that the list will be expanded three times a year has shattered any illusion of a stable trading framework.
“It is very difficult to claim we have certainty,” stated Luisa Santos of BusinessEurope, articulating the core of the crisis. Confidence is built on predictability, and the current US approach is the antithesis of that. When a table with a metal leg could suddenly be hit with a tariff, long-term faith in the system collapses.
This is more than just a disagreement over a single policy; it reflects a deeper anxiety about the reliability of the US as a partner. The perception is that Washington is prioritizing short-term, domestic protectionism over the health of the broader transatlantic economic relationship.
This crisis of confidence is fueling a strategic rethink in Europe. Industry bodies are no longer just asking for exemptions or clarifications; they are demanding robust, independent EU defense mechanisms. This shift indicates a belief that they can no longer rely on American goodwill and must instead prepare to protect themselves.