US additional tariffs - Impact on EU imports of goods and international trade relations
With Donald Trump’s return to the office of President the USA adopted a comprehensive package of tariffs that affects nearly all imported goods. The global economy appears to be wavering, the stock markets have reacted with volatility - and the economic forecasts in Europe have likewise been subject to considerable fluctuations. In the following report we outline the specific ramifications for companies in the EU and discuss possible courses of action.
The US additional tariffs tug-of-war
The USA’s new tariff regime signifies not just the end of multilateral tariff rules, but it also seems to be arbitrary and is constantly changing. At the start of April, under the new tariff regime, there was the threat of yet another additional 20% flat-rate tariff on imports of most goods from the EU to the USA. Yet, on 9.4.2025 the USA backed down by suspending the new tariff rules for the EU, initially, for 90 days. During this period, an American additional tariff of ‘just’ 10% will henceforth apply; this will be levied on goods valued above US$800 and on top of the normal US tariffs. Special arrangements will apply for the following two situations:
- Goods on which other additional tariffs are already charged. Recently, tariffs of 25% started to be levied on steel and aluminium exports as well as on car exports into the USA.
- Goods that were listed in the so-called Annex II, which was published by the US authorities, remain exempt from tariffs. These include, among others, many commodities, wood, pharmaceuticals and electronic integrated circuits.
The EU’s response
As a response, the EU first announced countermeasures to be implemented in two phases. In the first phase, with effect from 15.4.2025 - although now suspended again - additional tariffs from 2018 and 2020 on certain US products were to come into force once again. The second phase provided for the introduction of additional counter-tariffs; a comprehensive list has already been published.
In response to the 90-day suspension of the new US tariff rules the EU likewise suspended its previously announced countermeasures for 90 days and is, instead, expecting to negotiate a solution with the USA. Here, too, further developments remain to be seen.
Possible courses of action for affected companies
Businesses are facing the challenge of responding to the currently applicable additional US tariffs of 10% as well as possible further increases. Here, a structured approach is advisable.
- Impact analysis - The specific products that fall under the current or potential US tariff regulations have to be identified. This includes an assessment of the tariff code numbers for products and countries of origin using US publications.
- Review contractual framework conditions - This includes an analysis of existing contracts with US business partners in respect of tariff clauses and economic risks. Depending on the contractual situation, additional costs might stay with the importer or revert to the exporter. Price adjustments to compensate for tariffs, where appropriate, should be weighed up from a financial perspective.
- Delaying the payment of tariffs - Postponing the payment of tariffs should be considered for goods in bonded warehouses - which have not been cleared through customs - or exports that have not yet been consigned, in order to be able to react quickly to further developments.
- Modifications to products and supply chains - Look into alternatives to products burdened with tariffs as well as at logistical and supply chain-related optimisation. In group structures, changes in the transfer pricing policy can moreover contribute towards easing the burden.
