US Tariffs Reshape Global Trade — But EU Pact Opens Door to Growth

The introduction of sweeping new US tariffs this month marks a decisive shift in global trade policy, creating fresh challenges for importers and exporters worldwide.

Yet, for those positioned to leverage the recently finalised US–EU trade agreement, the disruption also brings significant new opportunities for market access, investment, and supply chain resilience.

The new country‑specific tariff system, introduced under a far‑reaching executive order, applies varying duty rates based on each nation’s trade balance with the US. Countries buying more US goods than they export will face tariffs of 10%, those with small surpluses will be subject to 15%, while larger surpluses trigger significantly higher duties. Some trading partners, including Taiwan, Canada, India, and Switzerland face steep increases, reshaping established trade flows, albeit as has been the case with other nations, exemptions for certain class of products and commodities apply.

A pivotal feature of the order is the introduction of penalties on goods deemed to be transhipped to avoid duties. Such goods may attract an additional 40% duty, with limited scope for appeal. Every six months, the US will publish a list of countries and facilities linked to alleged evasion, adding further compliance pressure. Goods withdrawn for consumption from 7 August will be subject to the new rates, while shipments already in transit before 5 October remain exempt.

Amid these changes, legal challenges may continue into autumn and possibly reach the Supreme Court. In the meantime, many US businesses are already feeling the strain, reporting falling profits and signalling plans to raise prices to offset tariff costs.

A Brighter Outlook for Transatlantic Trade
In contrast to this turbulence, the US–EU trade agreement offers a welcome element of stability. The deal establishes a 15% baseline tariff, replacing many higher pre‑existing rates, and is backed by substantial bilateral investment commitments.

Key benefits include:

  • Immediate tariff reductions on cars, pharmaceuticals, semiconductors, and key manufacturing inputs.
  • Zero tariffs on aircraft, selected chemicals, agri‑products, and raw materials.
  • Strategic commitments covering energy imports, defence procurement, and mutual investment flows.

For EU exporters to the US:

  • Reduced tariffs on high‑value sectors such as automotive, pharmaceuticals, and technology components.
  • Greater certainty in supply chain planning with capped tariff rates after investigations.

For US exporters to the EU:

  • Immediate tariff elimination for priority goods, enhancing competitiveness in aerospace, chemicals, and agri‑products.
  • Expanded market access supported by European procurement in energy and defence.

For UK exporters and importers:

    • Ability to leverage EU supply chains for tariff‑advantaged access to the US market.
    • New opportunities to integrate into transatlantic supply networks in automotive, chemicals, renewable energy, and aerospace.

While legal and economic uncertainty will persist in the short term, the structured nature of the US–EU agreement provides a valuable framework for future growth.

Noatum Logistics is committed to help you navigate the complexities of this shifting trade landscape. From tariff compliance and classification to strategic sourcing and transit planning, our integrated solutions and supply chain management technology will keep your supply chain agile, competitive, and compliant.

Talk to our team today to optimise your US and EU trading strategies.

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