US tariff policy: a wake-up call for Europe?

Johannes Steinel argues that the latest U.S. trade measures should be seen not merely as economic irritants, but as a call to action. As he puts it, 

“Tariffs are more than just economic disruptions—they are a wake-up call.

With global policy uncertainty at historic highs, Steinel highlights Europe’s fragmented response and slow implementation of common strategies as critical vulnerabilities. He urges policymakers to negotiate with resolve and realism, pointing to quieter, more effective approaches as a model for how Europe can regain influence without overreliance on symbolism. 

For businesses, Steinel calls for a shift in strategic planning. Companies must account for wider volatility across key variables like input costs, supply chains, and capital requirements. 

“The range of variation in planning forecasts is much broader today. 20 to 30 percent swings are no longer unrealistic,

he warns. 

Based on recent Eight Advisory research Navigating the impact of global tariff shifts on business valuations, Steinel outlines five core business risks tied to current trade dynamics: investment hesitancy, rising procurement costs, pressure on sourcing strategies, increased working capital needs, and tighter margins. 

While a prolonged trade war remains a threat, Steinel sees an even greater systemic risk in a potential U.S. fiscal crisis, with record-high deficits casting a long shadow on global stability. 

His message to Europe: now is the time to act, decisively and strategically. The age of geopolitical peace dividends is over. Businesses and governments should respond to today’s instability not with hesitation, but with overdue reform and integration. 

Read the full article by Johannes Steinel published in Unternehmeredition on June 24, 2025.