It seems the market has made its decision. The euro is falling significantly, so perhaps the deal with the U.S. is weighing on it.
To me, this agreement with the U.S. merely triggered a long-overdue technical correction.
Yes, many European products have become more expensive for American consumers. This may lead to a drop in demand.
In many areas, however, European products are necessary components in the American production chain, which leads to an increase in the price of goods produced in the U.S. In other areas, high-quality European goods are not expected to be replaced by American goods, partly because clients are not price-sensitive (who would replace a Ferrari with a Ford?).
Clearly, cars produced in the USA by companies such as Mercedes, VW, and BMW will not be affected.
Clearly, this deal is not specific. The counter-deals, such as those involving energy and arms purchases, are declarations of intent rather than definitive contractual agreements.
Overall, I have the impression that the United States is more concerned with domestic politics than with reaching binding international agreements.
This is particularly evident in the relationship with China, which has real leverage over the U.S. in some areas, such as rare earths. The US can be expected to exercise considerable restraint toward China until the deficit in strategic materials is significantly reduced.
For Europe, the environment means one thing above all:
Escape Into Innovation
During the post-war period, the German mark underwent a structural revaluation. German companies combated this by quickly searching for, finding, and implementing product improvements.
In order to avoid being caught in the crossfire between the United States and China, Europe will need to accelerate its pace of innovation.
Innovation cannot be mandated by the state. It is the obligation of companies themselves. In terms of their instinct for self-preservation and their responsibility toward their employees and society, it is the obligation of companies themselves.
Employee loyalty is especially important during periods of staff shortages. However, this is only possible if employees believe in the company’s strategy and its stability.
Saving money and defining processes is not enough. You must exploit all opportunities to make your work more productive and safer.
In terms of technical innovation, companies can now rely on new technologies and processes to improve products. Some of these technologies and processes shorten the time it takes to investigate and implement improvements.
I am personally involved in developing and optimizing hedges for materials, foreign exchange, and interest rates in the financial sector.
I also think you need to change your attitude about dealing with risks. In an increasingly dynamic environment, processes that are rigidly enforced will fail. The only questions are how quickly failure will occur and what its impact will be.
