In response to a parliamentary question from MP Sven Clement of the Pirate Party, Minister of the Economy Lex Delles, Minister for Foreign Trade Xavier Bettel, and Minister of Finance Gilles Roth disclosed that nearly 500 Luxembourg-based companies could be affected by US import tariffs.
The enquiry followed US President Donald Trump’s threats to impose tariffs on nearly all of the USA’s trading partners, prompting concerns about the potential economic repercussions for Luxembourg.
As news outlets around the world are publishing assessments of Trump’s first 100 days back in office, the discussion around US tariffs remains unavoidable. In Luxembourg, 460 companies that export to the US may face direct consequences, including 41 businesses dealing with materials used in the transport sector.
While the ministers avoided specifying the exact economic impact – citing the complexity of variables – they confirmed that the National Institute of Statistics and Economic Studies (STATEC) is currently analysing the potential effects. Key factors, such as the exchange rate of the US dollar, will play a significant role in determining the outcome.
Should the Trump administration proceed with the proposed tariffs, the ministers warned that the increases would be “historically high.” They also raised concerns about potential risks to Luxembourg’s financial services sector, including reduced income and tax revenue.
To mitigate a full-scale tariff escalation, the government is counting on a “proportionate” response from the EU, the ministers added.
