Who's hit by tariff war crossfire?

Euronews

14-03-2025

With AI enforced in nearly half of EU large companies, the latest Eurobarometer paints a nuanced picture of how people perceive its use at work, with a mix of optimism and concern.
The survey found that 66% of EU employees think AI and the most recent digital technologies are currently benefiting their work, while 21% claim AI is detrimental to their job.
Malta emerges as the most positive country, with an 85% rate, followed by Sweden at 78% and Lithuania at 76%.
The most AI-diffident nation is Romania (32%), followed by Italy (25%), Portugal (24%), and France and Belgium at 23%.
It's worth noting that some of the most sceptical countries also declared the lowest proficiency levels in using these new technologies.
For example, this rate is lowest in Romania (56%), followed by Hungary (60%), Greece (63%), Italy (64%) and Portugal (65%).
At the same time, 9% "don't know" how to judge the impact of AI, while 4% say it "depends" on the situation.
Across the e
In terms of how AI should be used at work, most respondents in the EU believe its role should be limited to ensuring workers' safety (67%) rather than directly assessing performances (36%), monitoring workers (31%) or even automatically firing people (16%) - although, on this, Poland (33%), Romania (28%) and Cyprus (25%) show particularly high rates.
Despite a relatively positive attitude shown by workers towards AI, 66% are afraid that the use of artificial intelligence and robots will trigger job losses. A slightly less negative perception, however, compared to five years ago (72%).
A World Economic Forum report corroborated these fears claiming that new technologies could mean the end of 83 million jobs globally in the next three years.
According to consulting firm McKinsey, the most threatened sectors in Europe could be food services, the arts, and wholesale and retail.
In any case, the overwhelming majority (73%) agree that robots and AI can increase the pace at which jobs can be completed.
In general, respondents aged 15 to 24 are the most inclined to judge the impact of new technologies on their job positively (71%), compared to 61% of those aged 55+.
Men are more likely than women to consider themselves skilled enough to use the most recent digital technologies, including Artificial Intelligence, in their daily life (73% vs 67%).
EU tariffs on American products are adversely affecting EU manufacturers of wines, plastics and pulp among other sectors relying on imported products hit by tariffs or caught as collateral victims of the trade war between both sides of the Atlantic.
The wines and spirits sector was among early casualties, hit on Wednesday by the US President's threat to impose 200% customs duties on imports in retaliation against EU tariffs on Bourbon whiskey.
'For several months now, we have been proposing that the European Commission adopt a positive approach towards the United States, based on reciprocity, to safeguard bilateral trade in wines and spirits,' Gabriel Picard, president of the French Federation of Wine and Spirits Exporters (FEVS) said, adding: 'By including American wines and spirits in its retaliatory measures, we end up wondering whether the European Commission wants our industry to die.'
In response to the 25% US tariffs on steel and aluminium, the European Commission on Wednesday presented retaliatory measures against a list of products imported from the US, ranging from soy beans and wood to Harley Davidson motorcycles and Bourbon whiskey.
Wine and spirits representatives point out that they have already borne the brunt of EU trade wars, including the recent spat over electric vehicles with China, which saw the latter counter European tariffs with customs duties on European brandy.
The European pulp and paper industry has also reacted after seeing imports of the products from the US on the EU list. The EU imported €962 millions' worth of pulp and €650 millions worth of paper and board from the US in 2023. In exchange European exports of pulp and paper and board were worth €238 million and €2.4 billion respectively. The sector has no interest in a trade war with the Americans.
Jori Ringman, Director General of the Confederation of European Paper Industries (Cepi) told Euronews that 'EU and US consumers who need basic hygiene products' were going to be impacted as well as 'a whole range of sectors using paper packaging.'
The trade association is scrutinising the reciprocal customs duties announced by the US President, which they fear the sector could fall victim to, and is readying to respond to the consultation launched by the European Commission on the list of American products targeted by European retaliation measures.
The list of products presented on Wednesday is open to consultation by industry representatives until 26 March. It will then be submitted to EU member states, who will be able to object to it. The Commission is aiming for entry into force in mid-April.
The plastics sector, targeted by European countermeasures, is also calling for peace. 'The imposition of tariffs, particularly on industrial goods such as plastics, will disrupt supply chains, raise costs for businesses, and negatively impact consumers on both sides of the Atlantic,' Virginia Janssens, Managing Director at Plastics Europe, said in a statement, calling for 'free and fair trade' between both sides of the Atlantic.
In 2023, 11.7% of EU exports of plastics went to the US (valued at €3.4 billion) and 22.2% of EU imports of plastics came from the US (valued at €5.3 billion).
The medical devices industry is also concerned to see components used in its sector affected. 'We respectfully urge the EU to ensure that medical technologies and their components are excluded from any retaliatory tariffs,' Medtech Europe said in a statement, adding: 'Ensuring uninterrupted access to these essential products is crucial for maintaining patient care and supporting the resilience of healthcare systems across Europe."
Member states must spend more, better and European, EU Commissioner for Defence Andrius Kubilius and the EU's top diplomat Kaja Kallas urge in a draft of the upcoming White Paper on the Future of European Defence, seen by Euronews.
'Rebuilding European defence requires a massive investment over a sustained period,' the Commissioners argue, adding that only through joint initiatives and coordination will EU countries be able to make a difference.
In 2024, member states reached a record investment of €326 billion, but the latest estimates indicate that at least €500 billion will be needed to plug the bloc's critical capability gaps over the next decade.
European Commission President Ursula von der Leyen presented a five-point plan last week to rearm the continent, detailing how to mobilise up to €800 billion over the coming years. This includes a new instrument of €150 billion in loans for member states to spend on joint procurement for defence and security.
Now, the EU executive will also consider reviewing the bloc's Sustainable Finance Disclosures Regulation (SFDR) to assess whether defence can be considered 'an investment goal in the sustainability framework.'
Creating a single market for defence, simplifying rules, and benefiting from economies of scale by working together are additional ways the Commission proposes to make more efficient use of the available funds.
'Coordinating spending boosts member states' bargaining power, lowers prices per unit, and strengthens industrial consolidation,' the 20-page document says.
Kallas and Kubilius advocate for collaborative procurement and large-scale pan-European defence projects to go hand in hand in the coming years, leaving member states the power to decide on the format and purpose – i.e., to address which critical capability shortfalls.
The Commission has identified seven key critical capability projects, covering areas such as military mobility, drones and counter-drone systems, AI, quantum, cyber and electronic warfare, and air and missile defence.
The EU executive will also consider introducing a European preference into public procurement rules for strategic defence-related sectors and technologies, likely to be reviewed in 2026.
The ultimate goal of simplifying rules, cutting red tape, and promoting more joint purchases and production is to create a true European single market for defence, addressing the long-standing fragmentation of a predominantly national-focused market.
Von der Leyen's second-mandate aspirations include creating 'one of the largest domestic defence markets in the world,' aimed at boosting competitiveness, defence readiness, and industrial scale to help the bloc compete with global players such as China and the US.
The white paper – still subject to change – also asserts that Europe must urgently rearm itself, as it faces medium-term challenges beyond Russia's potential military aggression, particularly in the unstable greater Middle East.
As the new US administration increasingly shifts its attention towards the Indo-Pacific, 'Europe cannot take the US security guarantee for granted and must substantially step up its contribution to preserve NATO strong,' the paper reads.
Reducing dependencies on third countries, especially in the global technology race, is another priority highlighted by the EU Commissioners.
Disruptive technologies such as AI, cloud and quantum computing, and autonomous systems are already shaping the battlefield, the paper warns, adding that the EU's strategic competitors are heavily investing in these areas.
'While dependencies from Russia have been significantly reduced, many member states still heavily depend on technologies from third countries, including China and the US,' the paper says.