Trump's tariffs could cost Belgium 12bn euros, Flemish businesses say
The import tariffs that US president Donald Trump wants to impose on European products could have a major impact on the Belgian economy, according to Voka, the Flemish network of enterprises.
On Wednesday, Trump said he planned to impose tariffs of 25 per cent on goods from the European Union. "We estimate the possible impact to be a loss of 2 per cent of our gross domestic product," Voka said on Thursday. The loss for Belgium would amount to 12 billion euros.
The threat of US tariffs and other international developments are having a negative impact on Flemish companies' assessment of the economy. Two out of three companies have a negative to very negative view of the economic climate, according to a survey by Voka.
Scaling back investment plans
Half of the 750 companies surveyed expect the economic situation to worsen in the coming year. Uncertainty is causing companies in Belgium to scale back their investment plans and restructuring is being considered more frequently.
Uncertainty is most acute in energy-intensive industries such as chemicals. Half of companies in these sectors expect to have to reduce their workforce within six months, and only a quarter still consider Belgium an attractive place to do business and invest.
"Our companies are having a harder time month after month," said Voka CEO Hans Maertens. "That is why all governments, European, federal and Flemish, must now join forces and pursue a policy that will restore our competitiveness and productivity in the short term," he said.
"Our companies are having a harder time month after month"
Six out of 10 companies surveyed believe the reform plans of Belgium's new federal government are a step in the right direction, although half think they will not be enough to put the country's budget in order. The government aims to improve competitiveness through measures such as reducing labour costs.
Recent EU plans to restore productivity have been met with similar caution. On Wednesday, the European Commission unveiled its Clean Industrial Deal, a plan to boost European industry while ensuring sustainability. Business leaders attending the launch of the deal in Antwerp welcomed the Commission's sense of urgency, but said the plans were too vague.
#FlandersNewsService | US president Donald Trump at a cabinet meeting, where he vowed to impose 25 per cent tariffs on European goods © PHOTO JIM WATSON / AFP
Related news
