Europes tech industry is bracing for impact after the Trump administration announced sweeping tariffs yesterday.
The US slapped a 20% tariff on imports from the EU twice the rate for the UK.
Switzerland fared even worse, receiving a hefty 32% levy.
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He said the tariffs might force the firm to consider initiating assembly and production in the United States.
Although the tariffs only apply to physical goods, service-basedstartupswill also feel the impact.
These include changes in supply chains, barriers to VC investments, and increased volatility in exchange rates.
Software could also suffer from additional constraints.
The fallout has already begun.
Trumps tariffs have sent markets into disarray and risk compounding existing tensions in global trade.
Stockshave plungedaround the world and countrieshave promisedretaliatory measures.
These measures could make businesses in the EU avoid the US altogether to sidestep additional costs.
For European startups, the tariffs may force a stark strategic choice.
Trump is playing with fire, warned Matt Penneycard, partner at UK-based Ada Ventures.
He added that this moment could be an opportunity for Europe.
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Story bySion Geschwindt
Sion is a freelance science and technology reporter, specialising in climate and energy.
