Newsletter

Impact of US tariffs on European businesses

Published:

Globe Europe

In April 2025, the United States of America introduced new worldwide tariffs on imports to the US, ranging from 10 to 73 percent. Some industries are already impacted by higher tariffs, including the automobile and the steel industries. These measures form part of President Donald Trump's new trade policy, and are aimed at encouraging US consumers to buy more American-made goods, thus guarding US businesses and boosting the US economy. The tariffs may, however, have far-reaching consequences beyond US borders as well. 

Tariffs are levied on all European countries. The US has imposed a collective 20 percent tariff on imports from the European Union, including from both Sweden and Denmark, whilst the tariffs targeting Norway and the UK are 16 and 10 percent, respectively. Although the tariffs only concern imports to the US, they increase the pressure on both sides and could make US companies less attractive as trading partners. 

The United States has historically been an important trading partner for European businesses, and the new tariffs directly impact the import and export of goods and services across the Atlantic Ocean. Consumers will in many instances bear the cost of increased prices, leading to reduced purchasing power. Some sectors that are impacted include: 

  • Transport and logistics: Tariffs affect shipping and transport costs and may bring higher expenses and new logistical challenges. Companies may need to reassess their logistics strategies to ensure profitability. 
     
  • Defence: Tariffs and protectionist measures may directly impact supply lines and preparedness in the defence sector, which underlines the importance of national self-sufficiency and robust cooperation between European countries.
     
  • Technology: European tech companies largely rely on international trade, with the US being an important trading partner. The new tariffs create uncertainty among European tech companies and may give momentum to investment in a stronger European tech infrastructure.
     
  • Contracts: The imposition of tariffs can lead to disputes over contract terms, particularly with regards to pricing and delivery obligations. Businesses must carefully review and potentially renegotiate contracts to mitigate risks.
     
  • Public procurement: Tariffs influence the conditions on which public authorities procure goods and services, which brings about new challenges and opportunities. Fluctuations in price, supply and demand may make it necessary for public authorities to revise their contracts.
     
  • Employment: Tariffs may affect the financial and operational situation of companies, potentially requiring reorganization processes, including both dismissals and temporary lay-offs.
     

As a full-service law firm, we at Schjødt may provide legal advice and strategic input on any of the above topics, and beyond. And, as a truly Scandinavian law firm, Schjødt is uniquely positioned to provide a one-stop-shop for legal advice throughout the jurisdictions of Norway, Denmark and Sweden, as well as in the UK.