Investing.com - European business leaders are moving the gauge the impact of possible sweeping tariffs on the European Union from U.S. President Donald Trump.
The president has recently hit out the EU, accusing the 27-member bloc of having "taken advantage" of the U.S. through a trade surplus it runs with America. Although he has not taken any action yet, Trump has claimed that the levies on the EU will "definitely happen".
EU officials have had limited contact with Trump's administration, adding that many of Trump's picks for top jobs are not allowed to speak to foreign counterparts until they are confirmed, Reuters has reported. European Commission President Ursula von der Leyen and Trump have not spoken since his inauguration last month, the news agency added.
European companies and policymakers this week have subsequently been racing to figure out how the tariffs could impact their operations, with France's central bank governor telling local radio that the duties would be "very brutal".
Still, Lars Fruergaard, CEO of drugmaking giant Novo Nordisk (NYSE:NVO), said that while the manufacturer of the popular weight-loss treatment Wegovy is not immune from Trump's levies, it is well-positioned to address the changes.
Meanwhile, firms with operations in North America and China have been assessing their production and pricing strategies in the wake of Trump's tariff moves. So far this week, Trump has postponed planned 25% levies on Mexico and Canada, but allowed a 10% tariff on Chinese imports to take effect.
Container shipping group Hapag-Lloyd's CEO Rolf Habben Jansen said it is "too early to push the panic button" about the U.S. tariffs on Chinese products, adding that the actions so far should not alter the flow of goods too much, Reuters reported.
French tire firm Michelin (EPA:MICP) is also looking into how the lingering threat of U.S. tariffs on Mexico and Canada could affect its business, but flagged that it was too early to estimate the consequences, according to Reuters.
(Reuters contributed reporting.)