Trump tariffs vs European startups - Tariffs could drastically impact supply chains, global interest rates and the flow of VC capital

European tech leaders were left reeling after Donald Trump imposed a wave of tariffs on foreign goods imported into the US.
On Wednesday, Trump announced a universal 10% tariff on all imports and higher rates for many countries around the world, including a 20% tax on goods from the European Union. 

Founders, VCs and industry experts tell Sifted tariffs could drastically impact supply chains, global interest rates and the flow of VC capital into startups. 

Optimistic onlookers suggested the tariffs present an opportunity for Europe to double down on tech sovereignty, while others warned they could lead to homegrown startups to relocate to the US.

“Trump’s tariffs will undeniably squeeze European startups,” says Vitor Monteiro, cofounder and CTO of Portuguese AI innovation studio Unflow. “They will raise immediate costs on hardware imports, software licenses, and cloud infrastructure and potentially throttle essential funding pipelines.” 

“It’s an economic gut punch for European startups that could stall critical innovation and throw growth-stage companies into uncertainty.”