Core Viewpoint - The U.S. has imposed a 15% tariff on EU goods, which poses significant challenges for small and medium-sized enterprises in Europe that rely on the U.S. market, despite being lower than the previously threatened rates of 30% or 50% [1][2]. Group 1: Impact on Companies - A French budget perfume brand, which has been in operation for 90 years, derives 25% of its sales from the U.S. market, and the new tariff is a serious test for such low-margin brands [1]. - The CEO of the perfume brand, Laurent Cohen, indicated that the retail price of their perfume, currently around $20, will increase to $23 due to the 15% tariff, which will likely alienate cost-conscious consumers [2]. - Larger luxury brands have more pricing power to absorb tariff impacts, while smaller companies struggle to adjust production capacity or supply chains quickly, often having to reduce profits to absorb some of the tariff costs, which will ultimately be passed on to consumers [1]. Group 2: Economic Context - The Eurozone's GDP growth slowed to 0.1% in Q2 2023, the lowest quarterly growth rate since early 2024, largely due to the impact of U.S. tariffs [2]. - The initial positive effects of European companies "rushing to export" before the tariff implementation are diminishing, indicating a potential downturn in economic activity [2].

Group 1 - The U.S. will impose a 15% tariff on most products exported from Europe starting Friday, significantly impacting European manufacturers [1] - European businesses are facing historically high tariff rates, leading to shipment suspensions, price increases, and concerns over potential bankruptcies [1] - The complexity of doing business with the U.S. has escalated, causing delays in goods transportation and a reevaluation of supply chain strategies [1] Group 2 - The wine industry on both sides of the Atlantic is suffering due to tariffs, affecting thousands of producers and businesses reliant on wine imports and exports [2] - Consumer giants like Procter & Gamble and Adidas are warning of price increases in the U.S. to cope with tariff impacts [2] - Some European companies, particularly in the automotive sector, are planning to establish factories in the U.S. to avoid tariffs, while others find it impossible to relocate their supply chains [2] Group 3 - The 15% tariff on affordable perfume products is forcing companies like Corania to demonstrate significant creativity to survive in the U.S. market [3]