How American Tariffs Challenge European Companies: Strategies for Resilience and Growth
March 6, 2025 – Authored by: : Bjorn van Brakel and Erik Broekhuijsen
The recent disruptions in supply chains are minor compared to the challenges that lie ahead. New tariffs and trade tensions will compel businesses to reassess their operations. Companies that rely on global supply chains must carefully consider risks and resilience.
According to Goldman Sachs, upcoming tariffs will extend beyond the trade conflict between the US and China. Countries such as Korea, Taiwan, India, and Japan might face stricter tariffs, affecting their exports to the United States. Although there is much discussion about ‘reshoring’ and ‘near-shoring,’ supply chains remain vulnerable. Businesses face risks due to changes in trade policies, and an excessive focus on domestic market protection can lead to trade wars that harm the economy.
How Companies Can Address Tariffs
1. Strengthening Supply Chains
- Nearshore Manufacturing: Bringing production closer to home can reduce exposure to tariffs. It may be costly, but it offers more control, shorter delivery times, and reduced risk.
- Diversification: Source raw materials and components from multiple countries to spread risk. This reduces dependence on a single region.
- Tariff Engineering: Through smart product adjustments and reclassification, companies can sometimes achieve lower tariffs or exemptions. This requires collaboration with experts.
2. Legal and Regulatory Solutions
- Free Trade Agreements (FTAs): Utilize FTAs such as the USMCA to benefit from reduced or zero tariffs.
- Foreign Trade Zones (FTZs): Goods in FTZs only pay tariffs upon market entry. This improves cashflow and reduces costs.
- Refund Programs: Apply for refunds on tariffs for imported materials that are processed for export.
- Accurate Classification: Ensure products are accurately classified to avoid penalties and high tariffs.
3. Financial Strategies
- Adjust Pricing Policies: If tariffs increase costs, companies must carefully raise prices and effectively communicate with customers.
- Collaborate with Suppliers: Negotiate with suppliers to share costs or enhance process efficiency.
- Avoid Panic Reactions: Learn from past crises and prevent overreactions such as stockpiling, which leads to waste.
4. Prepare for the Future
- Build Resilience: Reevaluate your supply chain and develop contingency plans.
- Exert Influence: Collaborate with policymakers to secure tariff exemptions.
- Seek Advice: Engage experts such as customs brokers and trade attorneys to better understand complex regulations.
Conclusion
It’s time to view the supply chain from a different perspective. By planning ahead and implementing intelligent strategies, companies can build resilience and minimize disruptions.
The Van Holland Group and Salesupply can assist businesses in exploring tariff engineering through their extensive knowledge of the American market and regulations. With our expertise in product classification and strategic reorganization, we help businesses reduce or even obtain exemptions from tariffs. We work with specialized consultants and customs experts to provide tailored solutions that align with your company’s specific needs.
Contact us to explore solutions for your supply chain together.
- Björn van Brakel
- Vice President at Salesupply Inc.
- b.vanbrakel@salesupply.com
- Erik Broekhuijsen
- CEO Van Holland Group Inc.
- erik@vanhollandgroup.com
Links to Background Articles
- Link Goldman Sachs
- Link naar Tariff Relief
