Global trade war hits Dutch technology industry hard
The global trade war is sowing uncertainty among technology companies: investments on the brakes, exports in the minus. A survey by FME, in which Energy Storage NL and its members participated, shows that as many as 60% of the nearly 250 companies surveyed are affected by U.S. import tariffs and countermeasures taken. In addition, 56% of the companies expect to postpone investments. Among exporters to the U.S., nearly half foresee a sharp decline in sales, averaging 43%. This puts further pressure on the technology industry, on top of existing challenges such as high energy prices, regulatory pressure and a deteriorating investment climate.
Theo Henrar, chairman FME: "If the trade war continues, our industry expects postponement of investments, a decline in exports and increasing disruptions in the chain. Without swift action, the Netherlands risks major economic damage."
Impact on investments
The global trade war is inhibiting willingness to invest. As many as 56% of companies expect to postpone investment if tensions persist, mainly due to demand outages from the U.S. and the lack of stability in the global market. "Entrepreneurs need confidence and predictability to invest. When that is lacking, the brakes are put on. Postponing investments sounds innocent, but ultimately brings the whole chain to a standstill - from supplier to end customer," stated FME president Theo Henrar.
Anticipated issues surrounding international trade
The global trade war directly affects technology value chains. Business owners mainly expect a decline in exports and uncertainty about agreed purchase prices. Among companies exporting to the U.S., almost half foresee a decrease in sales, on average by 43%. At the same time, concerns are growing about dumping of cheap products from China on the European market.
Unclear rules
For the vast majority, the rules are unclear. Entrepreneurs especially experience ambiguity due to the ongoing changes in U.S. policy around import duties and rules of origin.
FME fact sheet survey on global trade war
Dutch technology industry widely affected by global trade war. This was conducted by FME together with the FME partner industries NEVAT, FPT-VIMAG, Energy Storage NL, Fedet, Binnenklimaat Nederland and (Vereniging) Distributie en Afgifte Industrie.
