US president Donald Trump’s 15% baseline tariffs on EU imports may read like a throwback to old-school protectionism, designed to safeguard American jobs and manufacturing. But in today’s globalised and digitally driven economy, the risk isn’t just to steel or car factories, it’s to innovation itself.
The world’s most advanced technologies rely on complex, deeply integrated supply chains. Evidence from 2023 shows that even temporary US tariff shocks disrupted relationships between firms. And these tariffs won’t just hit the EU. They will disrupt the high-value tech ecosystems of partners like the UK – especially firms contributing to artificial intelligence (AI), semiconductor design and cybersecurity.
