The Impact of US Presidential Election on Industrial Trading in Europe

Another 4 years have passed and the US elections are here. On 5th November 2024, the new President of the United States of America will be elected. But what is the impact of the election result on expansion of Industrial companies to Europe and for the Industrial sector in general? 

Several points of influence can be considered: 

1. Trade Policies/agreements and Tariff

International trade could either be motivated by the new administration with trade agreements and free-trade directives. On the other hand, there is also the possibility for a more protectionist approach that would cause trade limitations and obstacles, such as the increase of tariffs of specific products. This all can have an impact on the overall trading volume and climate – also in the industrial sector. 

 Source: European Commission, EuroNews

2. Regulations and Economics

There are several focus points, when it comes to regulations that can be of high influence and importance for the overall industrial business climate after the US elections. The new administration might either implement and follow-up on more regulations, e.g. more sustainability or keep the status quo. On the other hand, a loosening of regulations is a possibility. This would change the industrial international sector as well.  

3. International Relations 

A new administration also means a new orientation of existent and new relations. That said, it is possible that international relations with particular countries and industries are intensified or weakened after the election.  

The direct impact for most companies in the sector will be rather limited in most cases, however, there are situations where the election result can have an impact on the Industrial Trade. This is mostly on a macro-economic level, whereby bigger sized companies might be effected first. 

For an expansion into Europe and for the international industrial trade it is therefore of big benefit to have a partner by your side with knowledge in the sector and Europe, that can help to manoeuvre in the difficult waters of the post-election situation. Each outcome also offers new chances again.