Special Topic: New US Tariffs and Strategic Production Advantages for European Companies

The economic landscape in the United States is undergoing profound changes. New tariffs, trade disputes, and a tightening regulatory environment pose significant challenges for European companies. At the same time, the US market offers enormous opportunities, particularly for companies that remain flexible and adapt their value chains accordingly.

Indeed, local production in the United States has become strategically more sensible than ever for many businesses. Not only does it protect against rising import costs, but it also provides access to a strong, innovative, and consumption-driven market. Companies manufacturing their products in the US for the US market benefit from significantly better conditions, both logistically and politically.

Recent developments in the trade conflict between the United States and the European Union have significant implications for European companies exporting to or operating within the US. On April 2, 2025, President Donald Trump announced comprehensive new tariffs, including a general import duty of 10% on almost all imported goods and specific duties of 20% on products from the European Union. These measures went into effect on April 5, 2025.

In response, EU member states unanimously approved retaliatory tariffs of 25% on selected US imports on April 9, 2025, targeting products such as diamonds, eggs, dental floss, sausages, and poultry. These countermeasures are set to be implemented in phases, starting April 15, 2025.

However, shortly after these measures were adopted, a three-month suspension of the new US tariffs on EU goods was agreed upon to create space for negotiations. During this period, previous tariffs (mostly between 2.5% and 5%) apply, although there is no certainty regarding the situation afterward. This temporary suspension provides only a brief respite - the underlying trend toward trade protectionism remains.

Overall, these reciprocal tariff measures significantly increase the costs and complexity of transatlantic trade. For European companies exporting to the US market, this could lead to higher product prices, reduced competitiveness, and risks to existing supply chains.

Establishing manufacturing operations in the US offers far more than just tariff advantages. It is a crucial strategic lever for companies looking to grow in the North American market and strengthen their resilience.

Key advantages at a glance:

• Tariff exemption and cost savings: Products manufactured in the US are not subject to the current heightened import tariffs. This can lead to savings of up to 25% for certain product categories.
• Market proximity: Closer proximity to customers significantly reduces delivery times, increasing flexibility and customer satisfaction.
• Reduced logistical complexity: Eliminating cross-border supply chains reduces potential errors, lowers transportation costs, and simplifies supply chain management.
• Increased resilience: Decentralized production in multiple global regions provides protection against geopolitical risks and trade barriers.
• Reputation and trust: Local production underscores commitment to the US market and is positively perceived by customers and partners.

US customs law is characterized by considerable detail and frequent changes. For companies that continue to export products, as well as those looking to manufacture locally, the following points are crucial:

• HS Codes and Classification: Correct product classification is essential. Misclassification can result in excessive duties or legal consequences.
• Rules of Origin: Only products meeting certain criteria (e.g., specific levels of local value-added) may be labeled "Made in USA"—a designation providing tax or sales advantages in many sectors.
• Anti-dumping and Countervailing Duties: These measures target products deemed to distort competition. Local production protects against these duties.
• Duty-Free Warehouses and Temporary Imports: Companies sourcing components from Europe for assembly in the US might benefit from temporary customs regulations.

Strategically planning and carefully executing these elements can help minimize risks and achieve significant competitive advantages.

Given these tariff developments, it is highly advisable for European companies to seriously consider establishing local production in the USA. Businesses that respond promptly and build local production capabilities or collaborate with existing US manufacturers will secure critical long-term competitive advantages.

We have maintained a dedicated sales presence in the USA for over a decade, gaining firsthand knowledge of the market, its challenges, and opportunities. Leveraging this experience, we are currently expanding our US operations to include local manufacturing capabilities, enabling us to support our customers with even greater flexibility and efficiency.

Additionally, we operate established production sites in Germany and Asia. This international structure allows us to provide tailored solutions to our clients, whether the focus is on short supply chains, cost-optimized production, or customs-efficient locations.

Our customers benefit from:

• Flexible production strategies responsive to geopolitical developments
• Lower customs and transportation costs through local US manufacturing
• Seamless collaboration across time zones and continents
• Deep expertise in US regulations and market dynamics

Take advantage of our global network and expertise to sustainably enhance your competitiveness in the American market.

Contact us now and benefit from our extensive knowledge of customs matters and US-based production. Get in touch to explore your personalized opportunities in the American market!