Chemical Industry Crisis: Europe's Struggle Amid U.S. Tariffs and Energy Woes
Europe's chemical producers are reeling under the impact of U.S. import tariffs and high production costs from the 2022 energy crisis. This turbulence has led to delayed customer orders, site closures, and job cuts, with major players like BASF and Wacker Chemie revising their outlooks amidst competition from Asia and economic uncertainty.
The European chemical industry is confronting fresh challenges as U.S. import tariffs disrupt global trade, causing delays in customer orders and a dip in demand. Once the EU's fourth-largest export sector, chemical producers are contending with high production costs after an energy crisis exacerbated by Russia's invasion of Ukraine.
The imposition of at least 15% tariffs on EU goods by the U.S. has impacted key customers in the automotive and consumer goods sectors. Major companies, such as BASF and Lanxess, are adjusting forecasts due to cautious client spending and are further pressured by competition from Asian markets.
Industry leaders warn of cheaper chemicals from China potentially swamping the European market if U.S.-China trade tensions intensify. Additionally, a weakening dollar complicates financial strategies for firms booking profits in euros. There is modest hope for demand stabilization by 2026, but uncertainty lingers as companies navigate these tumultuous conditions.
(With inputs from agencies.)
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