Europe’s chemical industry faces renewed turmoil as US tariffs, cautious consumer demand and currency pressure stall recovery efforts following the 2022 energy crisis.

Europe's chemical industry is still recovering from the 2022 energy crisis, but new US import tariffs are causing international trade to be disrupted, which delays client orders and lowers demand. The European Union's fourth-largest exporting sector, behind machinery, automobiles, and pharmaceuticals, has struggled with high manufacturing costs in recent years due to the sharp increase in gas and power prices following Russia's invasion of Ukraine.

Some businesses in the 655 billion euro ($767 billion) sector have closed locations and reduced staff in order to save money as a result of this and declining demand brought on by difficulties in important industries. Many of the industry's primary clients, notably those in the consumer goods, automotive, and industrial sectors, have been impacted by US import duties of at least 15% on items from the EU. Millions of dollars have been lost by automakers worldwide as a result of President Donald Trump's trade war.

According to LSEG data, third-quarter earnings for European chemical businesses are predicted to decline by 5% after dropping by 22% in the second quarter. According to Thomas Schulte-Vorwick, an analyst at Metzler Research, they have been anticipating a long-term rebound in volumes and profitability in the European chemical industry since the energy crisis.

He claimed that at the present, the combination of tariffs and pricing and margin pressure brought on by fierce Asian competition both domestically and internationally was somewhat poisonous. Though careful consumer behavior still has an impact, the industry's main players, most notably Brenntag, BASF, and Lanxess, are mostly protected from the direct import levies due to their substantial US presence.