A trade war would be detrimental for Flanders – resulting in some half a billion euros lost annually – admitted Flemish Minister-President Matthias Diependaele. However, he is careful not to dramatise the potential consequences.
Diependaele (N-VA) highlighted on Radio 1 that Flanders has a resilient economy and can do much to mitigate the impact. According to Diependaele, Flanders has sufficient reserves to absorb such a shock.
De Morgen reports that the tariff increases announced by US President Donald Trump could cost the Flemish economy half a billion euros annually. Diependaele confirmed these figures, stating they reflect the value of the new American tariffs, though exact numbers are hard to determine due to uncertainties in the US administration's plans.
The most affected sectors would be pharmaceuticals, chemicals and the automotive industry. Although car production has significantly decreased over time in Flanders, the region still supplies many companies in the sector.
The Flemish export agency, Flanders Investment & Trade (FIT), has set up a task force to assist affected companies. Despite the challenges, Diependaele remains composed, noting that Flanders managed to mitigate the impacts of Brexit by supporting the relevant sectors.
The anticipated trade war could also present an opportunity, according to the N-VA Minister. Europe and Flanders will need to find new markets, and the EU must remove existing internal barriers within the European market. "There is still significant economic growth to be found," Diependaele affirmed.
