Trump Tariffs & ‘America First’: The EU Manufacturing Dilemma for Iconic US Brands

The “America First” agenda, championed by former President Donald Trump, profoundly reshaped strategic considerations for multinational corporations. This policy, underscored by directives to “Buy American and hire American” and the threat of significant tariffs on imported goods, sought to incentivize the reshoring or retention of production within the United States. Such measures have exerted considerable pressure on companies reliant on globalized supply chains, particularly those with deep manufacturing roots in the European Union.

• The “America First” agenda aimed to incentivize domestic production through directives and tariffs.
• A 15% levy on EU products was agreed upon by President Trump and European Commission President Ursula von der Leyen.
• Companies face a dilemma: absorb costs, transfer to consumers, or relocate complex European facilities.
• Many firms are currently stockpiling products in the U.S. and adjusting prices, while evaluating partial reshoring.
• Irish pharmaceutical exports to the U.S. surged by 450% in February, indicative of extensive stockpiling.

This administrative stance, notably crystallized through a 15% levy agreed upon by President Trump and European Commission President Ursula von der Leyen, directly affects numerous products widely regarded as quintessentially American, despite their full production in the EU. This tariff regime presents businesses with a complex dilemma: either absorb increased costs and accept diminished profit margins, pass these costs onto American consumers through elevated prices, or undertake the expensive and intricate process of relocating sophisticated European production facilities cultivated over decades. In an immediate response, many corporations are opting to stockpile products within the U.S. and adjust pricing strategies, while concurrently evaluating contingency plans for partial reshoring, deferring the immediate dismantling of their established EU manufacturing lines.

Key Products Impacted by EU-US Tariffs

A range of prominent brands, despite their strong American identity, maintain significant manufacturing operations in Europe, making them susceptible to these new tariffs:

• John Deere 6R & 6M Tractors: Manufactured in Mannheim, Germany, this facility stands as Deere’s largest outside the U.S. These agricultural mainstays, crucial to the American farm belt, underscore the globalized nature of even deeply integrated U.S. industries. Former President Trump’s past rhetoric, including threats of a 200% tariff if Deere moved production to Mexico, underscored the administration’s focus on domestic manufacturing, irrespective of existing global footprints.
• Viagra (and generic sildenafil): Pfizer’s facility in Ringaskiddy, County Cork, Ireland, has been a pivotal production site for Viagra since 1998, reportedly manufacturing nearly the entire global supply of both brand-name and generic versions. Pharmaceuticals constitute an estimated 60% of Ireland’s exports to the U.S. In anticipation of tariffs, export volumes in this sector witnessed a substantial 450% increase in February, indicative of extensive corporate stockpiling.
• Ray-Ban Wayfarers and Aviators: These iconic sunglasses, originally designed for the U.S. Army Air Corps, are manufactured in Italy by EssilorLuxottica, a Franco-Italian conglomerate and global leader in eyewear. Approximately half of EssilorLuxottica’s products, including brands sold through Sunglasses Hut and Oakley, are destined for the U.S. market, illustrating the significant penetration of European-produced goods in the American retail landscape.
• Gillette Razor Blades: Procter & Gamble operates what it claims is the world’s largest razor factory in Łódź, Poland, distributing to over 100 countries. While this facility serves a global market, the Procter & Gamble CEO has publicly stated that prices for U.S. consumers would likely increase due to the tariffs. The brand, popularized after the U.S. Army issued Gillette razors to soldiers in 1917, is deeply embedded in American consumer culture.
• Botox: AbbVie’s campus in Westport, County Mayo, Ireland, is reportedly responsible for the “world’s entire supply” of Botox. With the U.S. Botox market valued at approximately $4.8 million (€4.2m), the potential impact of tariffs is substantial. AbbVie has already announced investments in stateside facilities to mitigate potential losses from sustained tariffs, signaling a strategic pivot towards domestic production where feasible.
• Polaroid Instant Film: The sole remaining Polaroid film factory globally is situated in Enschede, Netherlands. After the original U.S. company ceased film production in 2008, enthusiasts ensured the continuation of manufacturing in the Netherlands. Despite the rise of digital photography, the market for instant film, valued at $300 million (€262.8m) in 2024, has been revitalized by hobbyists and younger generations, underscoring the resilience of niche markets for European-made products.
• Nicorette Gum: While invented in Sweden, Nicorette gum became an over-the-counter staple in U.S. drugstores following FDA approval in 1996. Every pack of Nicorette gum continues to be produced in Sweden, but Haleon, the product’s manufacturer, is actively exploring the establishment of U.S. production facilities in Georgia to maintain its competitive position in the American nicotine-gum market.

These instances involving globally recognized brands vividly illustrate the intricate challenges that protectionist trade policies pose to deeply integrated international supply chains. As the U.S. administration continues to pursue its domestic manufacturing agenda, corporations are confronted with significant strategic decisions concerning production location, cost management, and market accessibility, which could fundamentally redefine the operational landscape for a diverse range of industries.