ANKARA

Recent US tariffs on European imports, including 20% for the EU and 10% for the UK, are expected to reduce revenue and profitability growth across several European industries, according to Fitch Ratings on Monday.

The direct effects on sectors will be mainly driven by trade exposure and growing competition while weakening economic growth will result in broader consequences, the credit rating agency said.

The chemical, automotive, and technology sectors will "likely be the most affected," facing increased competition and weaker growth prospects.

The chemical industry, which has a large trade surplus with the US, may struggle with greater global competition, while automotive manufacturers face supply-chain risks. Telecom equipment producers will also deal with higher costs to localize production.

Alcohol producers are expected to raise prices to offset tariff impacts, which could affect sales, particularly in lower-price segments. Other sectors such as hotels, restaurants, and consumer goods manufacturers will see reduced revenue due to decreased consumer spending.

Healthcare companies, including pharmaceuticals, could also face challenges from lower economic growth and trade barriers. The metals, mining, and oil sectors will contend with weaker demand and price pressures.