Europe\u2019s tech industry is bracing for impact after the Trump administration announced sweeping tariffs yesterday.<\/span><\/p>\n The US slapp<\/a>ed a 20% tariff on imports from the EU \u2014 twice the rate for the UK. Switzerland fared even worse, receiving a hefty 32% levy.\u00a0<\/span><\/p>\n Several European tech firms, investors, and analysts told TNW that the measures could disrupt supply chains, force pricing adjustments, and stem the flow of transatlantic VC capital \u2014 plunging European tech companies big and small into uncertainty.<\/span><\/p>\n \u201cTrump\u2019s trade tariffs will have a huge impact on the global tech landscape, forcing startups to reconsider their headquarters and assess alternative markets,\u201d said Louis Fearn, principal and sustainability lead at InMotion Ventures, the investment arm of Jaguar Land Rover.\u00a0\u00a0<\/span><\/p>\n TNW Conference – The 2025 Agenda has just touched down<\/p>\n Discover the insightful and dare we say controversial sessions that will take place June 19-20.<\/p>\n<\/div>\n<\/div>\n For companies with hardware-dependent models, the tariffs represent a major cost challenge. Miika M\u00e4kitalo, CEO of Finnish firm HappyOrNot, which makes customer feedback terminals, noted that nearly half of the company\u2019s business is across the pond. He said the tariffs might force the firm to consider \u201cinitiating assembly and production in the United States.\u201d<\/span><\/p>\n Although the tariffs only apply to physical goods, service-based startups will also feel the impact.\u00a0<\/span><\/p>\n Benjamin Avraham, founder and CEO of Swiss fintech Okoora, said there are many \u201csecondary effects\u201d that will harm the \u201csmaller startup community\u201d indirectly. These include changes in supply chains, barriers to VC investments, and increased volatility in exchange rates.\u00a0\u00a0<\/span><\/p>\n Software could also suffer from additional constraints. Amanda Brock, CEO at open-source lobby group OpenUK, said that while software has long been characterised as an intangible service, it \u201cmay be subject to other trade restrictions.\u201d\u00a0<\/span><\/p>\n The fallout has already begun. Trump\u2019s tariffs have sent markets into disarray and risk compounding existing tensions in global trade. Stocks <\/span>have plunged<\/span><\/a> around the world and countries <\/span>have promised<\/span><\/a> retaliatory measures. \u201cThe newly announced blanket tariffs by President Trump create more uncertainty in the global tech industry,\u201d said Martin Hartley, Group CCO of international tech consultancy Emagine. \u201cThese measures could make businesses in the EU avoid the US altogether to sidestep additional costs.\u201d<\/span><\/p>\n For European startups, the tariffs may force a stark strategic choice. \u201cTrump is playing with fire,\u201d warned Matt Penneycard, partner at UK-based Ada Ventures. \u201cStartups selling to US customers now face two options: anchor in Europe and embrace its stability, or find ways to maintain access to the States by setting up operations there.\u201d\u00a0<\/span><\/p>\n He added that this moment could be an opportunity for Europe. \u201cAs the US becomes a tougher place to operate, top talent may follow stability \u2014 this is Europe\u2019s moment to build a new Silicon Valley.\u201d<\/span><\/p>\n European startups are the heartbeat of TNW Conference<\/a>, which takes place on June 19-20 in Amsterdam. Tickets\u00a0for the event are <\/span>now on sale<\/span><\/a>. Use the code TNWXMEDIA<\/a>2025 at the check-out to get 30% off the price tag.<\/span><\/em><\/p>\n<\/p><\/div>\n If you liked the article, do not forget to share it with your friends. Follow us on\u00a0Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n If you want to read more like this article, you can visit our Technology category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n\n
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