In a recent survey conducted by the European Central Bank, Euro zone manufacturers expressed greater concerns about cheap imports from China than about tariffs imposed by the United States. Only half of the manufacturers polled anticipated their businesses in the euro area would be impacted by U.S. tariffs.
Many highlighted their focus on producing locally or exporting highly specialized products to the United States. However, their predominant worry centered on the potential increase of imports from China into the European Union if trade with the United States becomes restricted.
The ECB report emphasized that without protective measures by the EU, more manufacturers anticipated negative effects on pricing in the euro area rather than positive ones. Furthermore, if protective measures and retaliatory actions resulted in a broader tariff conflict, it was deemed more likely that costs and prices would escalate.
The survey, conducted via telephone between January 6 and 14, 2025, with 82 large non-financial sector companies operating in the euro area, also revealed that manufacturers were adjusting their workforce and expenditures to minimize costs. Stable pricing trends were observed in manufacturing, with moderate price increases noted in the service sector.