An emergency trade agreement forged to avert a full-blown transatlantic trade war has instead ignited a firestorm of concern and opposition within one of Europe's most vital sectors: the chemical industry. From Berlin to Paris and Madrid, leading chemical industry associations are sounding a unified alarm, warning that the deal, while preventing a worst-case scenario, represents a "bitter solution" that will severely undermine the global competitiveness of European producers.

"Dodged a Hurricane, Met a Storm"

Wolfgang Große Entrup, Managing Director of Germany’s chemical industry association (VCI), aptly captured the industry's complex mood: "We were expecting a hurricane, and now it's 'only' a storm. Thank goodness for that." While relief at avoiding a disastrous escalation is palpable, he stressed that the price paid by both sides remains "exorbitantly high."

Representing the EU’s largest chemical-producing nation, the VCI argues that the tariff levels established in the new agreement are "too high" for the export-reliant industry. This creates a lose-lose situation: European exports lose their competitive edge, while American consumers ultimately foot the bill for the tariffs.

A Structural Imbalance: An Uneven Playing Field

The French chemical association was even more pointed in its criticism, expressing "seriousness and concern" over the deal's creation of a "structural imbalance." Based on the details disclosed so far, the agreement establishes different conditions for US and European firms, placing European exporters at a distinct cost disadvantage.

The French body warned that this unfair playing field will severely damage Europe’s already fragile chemical sector unless a "zero-tariff" system is extended to all chemical products. They also voiced confusion over "contradictory" statements from the EU and US sides, urgently demanding the release of the full text to end market uncertainty.

The Hidden Costs for an Integrated Supply Chain

From Brussels, the European Chemical Industry Council (Cefic) issued a warning rooted in the industry's deep structural realities. It highlighted that the transatlantic chemical sector is a highly integrated supply chain, with raw materials and intermediate products frequently traveling back and forth across the Atlantic, adding value at each stage of production.

Under this model, tariffs are not a one-time cost but are compounded at multiple points, dramatically hindering trade and investment flows. Cefic noted that while the inclusion of some chemical products in a "zero-for-zero" tariff deal is an "encouraging" signal, it is far from sufficient. The additional duties threaten the efficiency and viability of the entire transatlantic chemical value chain.

A Unified Call for Negotiation and Self-Strengthening

Faced with a common predicament, the European chemical industry's demands are remarkably consistent. On one hand, they are forcefully calling on the European Commission to return to the negotiating table to secure a "significant reduction" and, ultimately, the complete elimination of tariffs on chemical products.

On the other hand, they are looking inward, urging the EU and its member states to take decisive action to absorb the external shock. These measures include:

Ensuring access to decarbonized energy at competitive costs.

Lowering industrial taxes to align with international standards.

Streamlining Europe's complex regulatory framework.

The Spanish chemical association added a call for the EU to be more agile in deploying trade defense instruments, including anti-dumping and anti-subsidy measures, to protect strategic products from unfair competition.

In short, the trade deal designed to de-escalate a crisis has instead thrown a harsh spotlight on the structural vulnerabilities of Europe's chemical industry. For this pillar of the European economy, the real test has just begun.