EU-US trade deal: chip sector rejoices, auto industry dismayed
The new trade deal offers relief for chip companies, but disappoints the automotive industry and other sectors such as steel and pharma.
Published on July 28, 2025
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The latest trade deal between the EU and the US has both winners and losers. Chip companies are relieved that chip machines have been exempted from 15% import duties. The automotive industry, on the other hand, continues to struggle with tariffs of 15% instead of the desired zero tariffs. This is causing disappointment among companies such as BMW, Volkswagen, and Mercedes. Although the deal brings stability, there are also critical voices about the impact on sectors such as steel and pharmaceuticals.
Stock market reactions: Chip sector on the rise, auto industry under pressure
The stock markets have reacted mixed to the trade deal between the EU and the US. Chip companies such as ASML have seen their shares rise. ASML recorded an increase of almost 4.5% on the Amsterdam stock exchange. ASMI and Besi are also benefiting from the relief among investors. The AEX index initially rose by more than 1%, but later fell back slightly to 0.8%. Elsewhere in Europe, reactions are mixed. The German DAX index is up half a percent, while the Stoxx 600 is also in the green. French aircraft manufacturer Airbus is benefiting from an exemption from tariffs on aircraft and parts. US market futures, such as the S&P 500 and Nasdaq, are up 0.3% and 0.5% respectively. These initial positive reactions show that the market is avoiding a further escalation of a trade war.
Gold price falls
The price of gold, often seen as a haven in uncertain times, has fallen from over €2,930 per troy ounce to €2,856 per troy ounce. This decline suggests that investors now see less need for safe investments, as trade tensions have eased somewhat. The gold price is an indicator of overall market sentiment, and the recent decline reflects the moderate relief over the trade deal. It is essential to note that the gold price may remain sensitive to future developments and uncertainties in the global economy.
Dutch reactions: Cautiously positive
Dutch Prime Minister Dick Schoof calls the trade deal the “best possible result.” He emphasizes that the agreements reached are of great importance to an open economy such as the Netherlands. Schoof points out that the Netherlands exports more than €50 billion worth of goods to the US every year. Business organization VNO-NCW emphasizes that maintaining the 50% tariff on steel and aluminum will have a significant impact on companies in that sector. ING economist Carsten Brzeski says that the deal could not have turned out better for the EU and that worse scenarios have been avoided. However, he remains critical and notes that the agreement still has to be approved by the European Parliament and national parliaments. The Dutch reactions are predominantly positive, but attention is also being paid to the painful points, such as the steel tariffs.
Criticism and uncertainties
France has criticized the trade deal and is considering imposing heavier taxes on US tech companies or excluding them from government contracts. There is also uncertainty about the treatment of pharmaceutical products, with the EU and the US making contradictory claims. This is causing uncertainty among companies in the medical sector. Carsten Brzeski of ING emphasizes that the investment part of the deal remains uncertain and that all parliaments still need to approve the agreement. Business organization FME argues that European industries deserve a level playing field. These critical voices and uncertainties show that the trade deal has not yet been fully finalized and that challenges remain.
Impact on the steel industry
The ongoing 50% tariff is severely impacting the steel and aluminum industries. This has a significant impact on companies in that sector, according to VNO-NCW. The new trade deal will result in high levies for Dutch companies, especially in the steel industry. Employers' organizations call the deal “painful,” but better than nothing. Although the agreement contains exceptions for strategic products, such as aircraft materials, certain agricultural products, chemicals, and chip machines, the steel industry is still lagging. The high tariffs on steel and aluminum are a significant obstacle to the competitiveness of European steel companies. The sector will have to innovate and work more efficiently to minimize the impact of the tariffs.
The deal in context
US President Donald Trump and European Commission President Ursula von der Leyen reached a trade deal between the US and the EU. The announcement comes less than a week before the August 1 deadline, when Trump's higher tariffs were set to take effect. This averts a trade war that could have dealt a severe blow to the global economy. The EU has agreed to purchase $750 billion worth of US energy and invest $600 billion on top of existing investments. The EU is also opening markets in member states for trade with the US without tariffs and purchasing “significant amounts” of US military equipment.
