European Union companies have successfully adapted to increased US tariffs, but they continue to face significant challenges selling their products within the bloc due to differences in national regulations and standards. These findings are presented in a study by the European Investment Bank.

Technological Adaptation and AI Implementation

According to a survey by one of Europe’s largest investment banks, the level of artificial intelligence adoption among EU companies is comparable to that in the US, which is helping to drive productivity growth. The study, conducted among approximately 13,000 companies between April and July of last year, showed that European enterprises are responding effectively to rapid technological progress, the demands of the green transition, and rising US tariffs.

Trade Agreements and Tariffs

In July of last year, Washington and Brussels reached a framework trade agreement that set a 15% import tariff on most goods from the EU. While this rate was lower than initially threatened, it fell short of Europe’s goal of completely eliminating tariffs.

The Impact of Tariffs and Internal Barriers

American companies expressed greater concern over rising tariffs than their European counterparts. Much of the impact of these tariffs was offset by US importers, allowing EU exporters to maintain a manageable level of influence.

At the same time, differences in national laws among the 27 EU member states create obstacles for 62% of European companies seeking to export goods to other countries within the bloc. This highlights the incomplete formation of a single EU market for goods and services.

The Effect of Removing Barriers

Eliminating internal barriers could increase the ratio of company investments to assets by 10%, with the largest growth expected in intangible investments.

Comparison with International Studies

The study’s results align with findings from the International Monetary Fund, which indicate that internal trade barriers in the EU, caused by regulatory differences, are equivalent to a 44% tariff on goods and a 110% tariff on services.