Impact of the new US Tariffs on Logistic, Supply Chain, Transportation
New US tariffs pose major challenges to the European economy.
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Learn how companies can respond to trade conflicts, with strategies to avoid tariffs, adapt supply chains, and minimize risk.
In early 2025, the US initiated a series of measures that included the introduction of significant tariffs on key sectors, namely steel, aluminum, automobiles and technology.
This decision provoked an immediate and intense international reaction, with major trading partners responding with tariffs, formal complaints to the World Trade Organization, and intensified diplomatic negotiations.
As markets adjust and companies reevaluate their supply chain strategy, the long-term consequences of this assertive trade policy remain uncertain.
In the following article, we will outline the new US tariffs, the European response, and tariff considerations, i.e. what entrepreneurs should consider from the perspective of avoiding tariffs when making business decisions.
Overview of measures implemented by the United States
A complete table of the most current and proposed measures, duty rates and goods/countries affected:
- February 1, 2025:
In an attempt to address concerns about illegal immigration and drug trafficking, President Trump announced tariffs on imports from Mexico (25%), Canada (25%), and China (10%).
- February 3, 2025:
After lengthy negotiations, a consensus was reached on the implementation of a 30-day tariff suspension for Mexico and Canada, with both countries committing to strengthen their anti-drug measures.
- February 4, 2025:
The 10% tariff on all Chinese imports proceeds as planned.
- February 10/11, 2025:
In a move that received a mixed response from global trading partners, President Trump announced plans to impose a 25% tariff on all steel and aluminum imports. - The move is intended to provide support to domestic industries in the United States and is expected to have the greatest impact on trading partners such as Argentina, Australia, Brazil, Canada, EU countries, Japan, Mexico, South Korea and the United Kingdom.
- February 18, 2025:
The US government announced plans to impose a 25% tariff on automobile imports starting April 2, 2025. This measure is intended to provide support to the domestic automotive industry. In addition, the government is also considering implementing tariffs of 25% or higher on pharmaceuticals and semiconductors, aimed at reducing dependence on foreign suppliers. The imposition of US tariffs has had a significant impact on the European automotive industry, given the US’s status as a key export market. Automakers and suppliers are facing combined revenue losses of several billion euros. Therefore, the proposed tariffs have the potential to result in a substantial reduction in operating profits and weaken the competitiveness of European manufacturers, potentially leading to a decline in market share and job losses. The EU pharmaceutical industry is also likely to be affected, with US tariffs of 20% potentially reducing German pharmaceutical exports by a third. This could lead to a decline in sales and hinder investment in research and development, compromising the sector’s ability to innovate and be competitive in the long term.
- February 27, 2025:
Trump confirmed that starting March 4, 2025, there will be a 25% tariff on imports from Canada and Mexico, as well as an additional 10% tariff on Chinese products.
- March 1, 2025:
In an effort to address ongoing challenges in the domestic lumber industry, President Trump signed an executive order aimed at increasing U.S. lumber production. At the same time, he launched an investigation into the potential implementation of tariffs on imported lumber.
- March 4, 2025:
The 30-day deferral period ends and the 25% tariffs imposed on trade with Canada and Mexico are implemented. Additionally, tariffs on Chinese imports are increased from 10% to 20%, precipitating the emergence of new trade conflicts.
- March 12, 2025:
25% tariffs on steel and aluminum officially began, impacting EU exports as previous exemptions are lifted.
- March 13, 2025:
In a recent development, US President Trump has issued a warning to the European Union, threatening to impose 200% tariffs on wine, champagne and other alcoholic beverages if the EU does not withdraw its tariffs on whiskey. This move follows the EU’s response to US tariffs on steel and aluminum, where the EU announced its own tariffs on US products, amounting to €26 billion. In response to Trump’s request, France has expressed its refusal and announced countermeasures. France and Italy, whose wine exports to the US amounted to around €4.9 billion in 2024, would be particularly affected.
- March 26, 2025:
President Trump announced a 25% tariff on autos and auto parts for imports into the United States. The tariff will go into effect on April 2, 2025, with tariffs for auto imports starting a few days later. Auto parts are expected to begin tackling tariffs in May. This action will especially affect Mexico, Japan, Canada, and Germany as major foreign suppliers of autos and auto parts to the United States.
The impact on the European Union
The imposition by the United States of 25% tariffs on steel and aluminum has significantly impacted the European industry, as it has led to an increase in the costs of exports to the United States and a consequent weakening of the competitiveness of European producers.
Companies may be forced to pass on the additional costs to their customers through price increases or reduce their profit margins, resulting in economic losses. This is particularly problematic for countries that export large quantities of steel and aluminum, such as Germany and France, whose steel and aluminum industries are highly dependent on international markets.
Tariffs could lead to lower production, job losses and countermeasures by the EU, further exacerbating the transatlantic trade conflict.
The European Union’s response to US tariffs
The European Union has adopted a robust response to US tariffs of up to 25% on steel, aluminum and other products. The European Commission has stated its intention to implement a combination of existing and new countermeasures to safeguard European companies and consumers from the economic ramifications.
Phase one: Reintroduction of existing tariffs
The European Union is countering the recently imposed U.S. tariffs on steel and aluminum imports by reintroducing its own countermeasures. These tariffs, originally introduced in 2018 and 2020 in response to U.S. trade restrictions but later suspended, will now be reinstated, effective April 1, 2025.
The reintroduced tariffs will affect a wide range of US products, including bourbon whiskey, motorcycles, jeans, orange juice, peanut butter and boats, with an estimated value of €2.8 billion. In addition, products such as steel products, industrial goods and specialty steel and aluminum products, with a value of approximately €3.6 billion, will be subject to the tariffs.
Phase Two: New Punitive Tariffs
New tariffs are being considered and the EU will introduce new tariffs on US products worth €18 billion, covering a wide range of industrial and agricultural products, including fruit, cereals and other agricultural products. The European Commission launched the consultation process with stakeholders on 12 March 2025.
As part of this process, a list of products that will be affected by the additional countermeasures has been published. This list has been made available on the website of the Directorate-General for Trade (DG Trade) and includes both industrial and agricultural products. Affected industrial products include steel and aluminum products, textiles, leather goods, household appliances, tools, plastics and wood products. In the agricultural sector, affected products include poultry, beef, certain seafood, nuts, eggs, dairy products, sugar and vegetables.
The aim of these measures is to ensure that the economic damage caused by US tariffs is offset to the same extent by EU countermeasures. EU officials have also said that the countermeasures are targeting products with high symbolic value, such as Bourbon and motorcycles. Further analysis also suggests that the EU tariffs are designed to target products from Republican-leaning states, such as soybeans from Louisiana and beef and poultry from Arkansas and Nebraska.
After the conclusion of the consultation phase on 26 March 2025, the EU Commission will undertake a full assessment of the feedback received, consolidate the findings and finalise the draft implementing act. The legal basis for this act is the Implementing Regulation (Regulation (EU) No 654/2014), as the US measures are classified as safeguard measures.
The implementation of the countermeasures, including the new tariffs, is scheduled for mid-April, when the implementing act will enter into force and the countermeasures will officially enter into force. The EU has underlined its openness to dialogue with the US. The aim of this dialogue is to reach a mutually beneficial negotiated solution that avoids an escalation of the trade conflict and is mutually beneficial.
Tariffs from a UK perspective
UK Prime Minister Sir Keir Starmer met with President Trump in Washington on 27 February 2025 to discuss a variety of policy issues, including the possible introduction of tariffs on UK-produced raw materials.
Since President Trump took office, the UK has been hit by a series of tariff measures introduced by the US government to protect the US manufacturing sector.
The 25% tariffs on steel and aluminum products introduced on March 12, 2025, will increase costs for U.S. companies, although the level of U.K. exports in these raw materials pales in comparison to the EU and other exporting nations. Comments from U.K. experts have suggested that the tariffs will impact existing military contracts and therefore increase U.S. budget spending.
Unlike the EU, the UK has decided not to take retaliatory measures as it seeks to negotiate a free trade agreement with the US. This is partly due to President Trump’s positive announcement that a US-UK trade deal could be signed “pretty quickly”.
This could provide significant protection from further generalised tariff measures imposed by the US. To offset the benefits, the EU is very clear in its message that the acceptance of some US products could have an impact on any agreement on simplifying border requirements between the UK and the EU.
As the EU is the UK’s largest trading partner (for exports), Prime Minister Starmer is likely to avoid angering the European Parliament at a time when discussions on the current EU-UK trade deal are due to begin in the coming months.
If the UK can avoid further damaging US tariffs, it could be in a great position to revive its manufacturing industry and increase its market share in the US.
Only time will tell, but UK manufacturers and exporters need to consider this issue carefully and plan for every eventuality to ensure plans are in place to counter any emergency tariffs.
Reactions from other countries
The introduction of tariffs on steel and aluminum imports by the United States has provoked a strong reaction from various global players. Among the nations most negatively affected by this decision, Canada has quickly declared its intention to impose retaliatory measures.
Prime Minister Justin Trudeau said the nation will slap a 25 percent tariff on more than $20 billion in U.S. goods, including steel, aluminum and other products. The move is intended to protect the nation’s economy and express disapproval of U.S. policy.
In response, China and Japan expressed concerns about the potential consequences for global trade, urging the United States to reconsider its position to avoid escalating tensions.
Australia has also expressed its disapproval, although it has not yet taken any countermeasures.
Business leaders around the world are expressing concerns about the economic impact of these tariffs, as market uncertainty increases and companies face higher costs and supply chain disruptions. Analysts have warned that a prolonged trade conflict could lead to a global recession. In short, most non-EU countries oppose the US tariffs and are considering retaliatory measures to protect their economies.
Customs Considerations for Businesses
Warehousing
For companies importing large quantities of inventory, using a bonded warehouse is a viable solution to facilitate cash flow and avoid unnecessary duties.
As the trade war continues to evolve, the use of a bonded warehouse could prove crucial to managing exposure to any additional duties that may be imposed by the EU.
Indeed, by storing goods in a bonded warehouse, the importer will be able to react quickly to any developments. Stock can be imported without paying any EU tariffs for an unlimited period of time. It also allows duties to be paid only upon removal from the warehouse, so that costs can be managed more effectively, thus ensuring that the company remains profitable during these uncertain times.
For importers who have a slower turnaround of inventory, a bonded warehouse could be useful as it could minimize exposure to any additional tariffs, as the measures may have been removed by the time the goods are subject to a sale. This could manage any uncertainty and minimize the risk of unwanted tariffs on goods.
Any implementation of a customs warehouse can be costly, both financially and in terms of resources, so it may not be an option for many EU importers. The alternative is to use a third-party customs warehouse operator who can be employed to store goods on behalf of the importer. There will be additional costs, and this must be weighed against the potential benefits and financial planning required to ensure the imported goods remain profitable.
Customs warehousing should be a key consideration for importers exposed to EU countermeasures and should be explored as part of any planning to determine the benefits this procedure can present to the business in managing its customs obligations.
Country of Origin – Considerations for Supply Chain Reorganization
Importers and exporters will be considering ways to mitigate costs and risks to their business. Whether it’s finding legal ways to import goods from the U.S. without countermeasure duties or exporting to the U.S. without U.S. tariffs applying to those goods.
Such efforts could give rise to new supply/supply routes. In this regard, it is crucial to prevent such adjustments from being considered as evasions of applicable tariffs. How could this be?
The relevant factor for the application of punitive tariffs when importing or exporting to the United States is not whether the goods are physically shipped from the United States or the EU, but the origin of the goods. According to the regulations, such duties always apply to goods originating in the respective country, i.e. punitive tariffs would apply even if the US-origin goods were shipped from Canada to the EU. Therefore, it is not possible to avoid the tariffs simply by changing the shipping route or adding a commercial agent to the supply chain.
To avoid such tariffs, the origin must be changed to a country that is not subject to punitive tariffs. The origin of the goods is the country where their last substantial processing took place. Therefore, for example, to avoid tariffs on US motorcycles, production must take place outside the United States, such as in Mexico.
Supply chain Italy. Logistics Italy. Ecommerce shipments Italy. Returns management Italy. Cross docking Italy. Drop shipment Italy. Storage services Italy. Warehousing services Italy. Transport services Italy. Packaging services Italy. Kit services Italy. Order management services Italy. Logistics for market-places Italy. Retail logistics Italy. Wholesale logistics Italy. B2C logistics Italy. B2B logistics Italy. D2C logistics. Ecommerce logistics Italy. E-commerce logistics Italy. Full truckload shipments FTL. Part-load shipments LTL. Groupage shipments Italy.
