US tariffs take effect: What EU businesses must do now

Today, 9 April, marks the introduction of President Trump’s reciprocal tariffs. But what does this mean for EU businesses? In short, all goods originating in the EU (including Ireland) are now subject to an additional 20% tariff, unless specifically exempt. As expected, exemptions are limited.

With negotiations between the US and EU intensifying, a workable agreement remains unlikely in the short term. The new tariff policy is set to further disrupt global trade and supply chains.

Now that the policy is in force, businesses must immediately assess the impact and take steps to protect their competitiveness. These tariffs not only affect supply chains, but also present significant tax and financial risks.

Five actions to protect your business

1. Assess worst-case cost scenarios: Estimate potential exposure by calculating the highest possible tariff and trade disruption costs.
2. Explore duty mitigation options: Align customs valuation with transfer pricing to potentially reduce tax rates when importing into the US.
3. Implement strategies to avoid or recover duties: Consider sourcing from alternative suppliers or markets to reduce or delay duty payments.
4. Leverage special US trade provisions: Explore initiatives such as bonded warehousing, Foreign Trade Zones (FTZs) and special classification rules.
5. Stay updated on compliance and tax changes: Monitor developments in trade disputes that may affect customs and tax regulations.

Take action to protect your business from tariff risk

As geopolitical pressures rise, swift action is critical. Businesses must not only mitigate immediate risks, but also implement long-term strategic responses.

Grant Thornton Ireland and Grant Thornton US are ideally positioned to guide businesses through the complexities of transatlantic trade. Our global, multidisciplinary platform enables seamless cross-border collaboration and tailored advice.

Speak to our trade and customs specialists today.

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