European companies were on edge Monday following the announcement of a new trade agreement between the United States and the European Union. This outcome marks the end of prolonged tariff uncertainty but introduces new cost pressures.

The trade deal, announced Sunday, imposes a 15% import tariff on most EU goods. After an initial relief rally—simply because a deal had been reached—shares of carmakers and alcohol producers fell.

Leading the way lower were BMW, Volkswagen, Mercedes-Benz and Stellantis, along with Pernod Ricard and Anheuser-Busch InBev, all down between 1% and 2%.

The declines reflect a perception that the deal is lopsided—more of a win for U.S. President Donald Trump—and ongoing uncertainty around the fine print of the agreement.

The 15% rate is lower than the 30% once threatened by Trump and brings clarity for European producers of cars, aircraft and chemicals. However, it still falls short of early hopes for a “zero-for-zero” tariff structure, and sits well above last year’s average rate of around 2.5%.

“The price is high for both sides. European exports are losing competitiveness. U.S. customers are paying the tariffs,” said Wolfgang Große Entrup, head of the German Chemical Industry Association (VCI). “But it could have been worse. Those who expect a hurricane are grateful for a storm.”

The deal also includes $600 billion in EU investments in the U.S. and $750 billion in EU purchases of U.S. energy over Trump’s second term. While some exemptions have been outlined, key details are still pending.

For automakers, the 15% tariff marks a reduction from over 25% under the global levy imposed by Trump in April. A senior European Commission official involved in the talks noted that the EU is also cutting its tariff on U.S.-made cars to 2.5%.

Auto parts suppliers were among the day’s strongest stock market performers. France’s Valeo rose around 4%, while peer Forvia—also buoyed by strong earnings earlier Monday—jumped more than 10%.

“Tariffs are lower than those imposed by the U.S. administration in recent months. If this reduces volatility and uncertainty, it’s better for all economic players,” said Olivier Durand, chief financial officer at Forvia, during an earnings call.

Aircraft and aircraft parts will be exempt from tariffs—good news for French planemaker Airbus—as will certain chemicals, some generic pharmaceuticals, semiconductor equipment, farm products, natural resources and critical raw materials.

Shares in drugmakers Sanofi, Roche and Novo Nordisk edged higher, while generics maker Sandoz posted strong gains.

“It’s definitely better than 200%. Most had 25% factored in. But I don’t think anyone believes it until it’s signed,” one pharmaceutical industry source told Reuters, referring to earlier threats from Trump to tax drug imports.

Shares in ASML, the world’s leading supplier of chipmaking equipment, also rose more than 4%, ranking among the biggest gainers on the pan-European STOXX 600 index.

Still to be negotiated: spirits, wine, and cosmetics sectors await clarity

Dutch brewer Heineken welcomed the agreement, with CEO Dolf van den Brink praising the certainty it brings.

The world’s second-largest brewer ships its namesake lager from Europe and Mexico to the U.S. and has also suffered from falling consumer confidence in key markets, such as Brazil.

However, tariff levels for spirits—impacting brands such as Diageo, Pernod Ricard and LVMH—remain under negotiation.

“In the coming days, there may be talks for certain agricultural products under a zero-for-zero model, which both the European and U.S. sectors have advocated,” said José Luis Benítez, director of the Spanish Wine Federation. He warned that a 15% tariff could disadvantage European wine exporters against competitors facing only 10% tariffs.

“If there are any exemptions, we hope the European Commission recognizes that wine should be included,” he added.

Lamberto Frescobaldi, president of Italian wine consortium UIV, stated Sunday that a 15% tariff on wine would result in a loss of €317 million ($372.6 million) over the next 12 months. The group is waiting for the final text of the deal.

Some executives said that while the agreement—following a similar one with Japan—offers clarity, it still poses risks to European industries.

“While this agreement puts an end to uncertainty, it poses a significant threat to the competitiveness of the French cosmetics industry,” said Emmanuel Guichard, secretary general of French cosmetics association FEBEA, whose members include L’Oréal, LVMH and Clarins.

($1 = €0.8507)