Trump’s Tariffs Drain Hundreds of Millions from Europe’s Corporate Giants
Trade war fallout hits EU's biggest players—hard.
The Cost of Protectionism
Former President Trump's tariffs aren't just campaign rhetoric anymore. Europe's blue-chip companies are bleeding cash—to the tune of hundreds of millions. No bailouts, no mercy—just old-school economic warfare.
Who's Holding the Bag?
From automakers to luxury brands, the continent's industrial crown jewels are taking direct hits. Shareholders scream, CFOs scramble, and Brussels bureaucrats wring their hands. Meanwhile, someone's probably shorting these stocks from a beach in Miami.
Tariffs: the gift that keeps on taking—unless you're long on pain.
Tariff damage rips through Europe
Stellantis, the parent company of Dodge, Fiat, Chrysler, and Peugeot, shocked investors earlier by publishing early earnings numbers showing a €2.3 billion loss for the first half of 2025. The company said it already took a €300 million hit from tariffs and lost production. No other details were offered, but the warning was loud and clear.
Sweden’s Volvo Cars also reported a major drop in Q2 operating profit, citing Trump’s tariffs as the main drag.
Puma, the German sportswear company, dropped its full-year profit forecast entirely on Friday and said it now expects to post an operating loss instead. A few months ago, Puma was aiming for profits between €445 million and €525 million, but those numbers were before the full effect of American trade policy took hold. Puma blamed “dampened sales” from the U.S. market for the reversal.
Remy Cointreau, the French beverage group known for high-end brands like Cointreau and Mount Gay rum, said it WOULD now absorb €35 million in U.S. tariff costs for the 2025–26 fiscal year. That’s €10 million more than the €25 million hit it forecast earlier. The bump comes from rising duties on the company’s cognac exports to the U.S., one of its biggest markets.
Nokia also adjusted its full-year outlook downward on Tuesday. The telecom giant now sees operating profit between €1.6 billion and €2.1 billion, compared to the previous range of €1.9 billion to €2.4 billion.
In a statement, Nokia said, “The largest headwind is currency fluctuations (particularly the weaker USD), an approximately EUR 230 million negative impact. Also, the current tariff landscape is expected to impact full year operating profit by EUR 50 million to EUR 80 million.” That comes out to around $94 million lost.
Traton, a major truck manufacturer in Germany, also revised its guidance on Friday. “We are now anticipating a significant decline for the North American truck market,” the company said. Traton now expects sales to drop up to 10% this year, a steep cut from its original forecast, which ranged from 5% growth to 5% decline.
Revenue outlook has also been slashed to a 10% drop or flat outcome, down from earlier guidance that allowed for growth. Traton’s projections are based on tariffs currently in place and don’t account for possible increases to 50% on Brazilian goods or 30% on EU imports.
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