How US tariffs on EU goods could hit European sellers hard

On 12 July 2025, President Trump announced via letter on his platform that 30% tariffs would apply to EU and Mexican goods from 1 August – a sharp escalation from earlier discussions for a 10% rate.

In a major development, EU and US negotiators struck a deal on 27 July 2025 to cap tariffs at 15% for most EU goods. This ceiling applies across most product categories, although steel and aluminium remain subject to higher existing tariffs, while pharmaceuticals and semiconductors are exempt.

If implemented, these measures could significantly affect European sellers targeting the US market, with knock-on effects across pricing, compliance, and competitiveness. Let’s take a look at how this would affect sellers in the EU.

Why are tariffs on the table?

The dispute stems from US opposition to EU digital services taxes on US tech firms, alongside broader accusations of unfair trade practices. Under Section 301 of the Trade Act of 1974, the US can impose retaliatory tariffs where it finds such practices.

Since tariffs were introduced, we’ve explored:

• strategies for affected sellers buying from China and shipping West

• how tariffs highlight EU expansion as an avenue for US sellers

Our sister company KATA Global Logistics has also broken down the tariffs timeline.

While the revision softens the blow from the threatened 30%, the 15% rate is still a significant cost for EU exporters – particularly SMEs and cross‑border sellers. EU counter‑tariffs, covering €72–93 billion in US goods, remain on standby should the deal break down.

Which EU exports are affected?

The agreed 15% tariff covers a wide range of products, including:

• Cars and automotive components
• Luxury goods, including textiles and fashion
• Processed food, wine, and spirits
• Machinery and industrial equipment

Steel and aluminium face higher rates under existing measures, while certain high‑tech goods, notably pharmaceuticals and semiconductors, are exempt.

According to Eurostat, in 2024, the EU exported €499 billion worth of goods to the US, making the US its single largest export market. A 30% tariff on even a portion of these goods could disrupt billions in cross-border trade. Even at 15%, tariffs could disrupt billions in annual trade flows.

Key US tariff rates* affecting EU‑origin goods

*As of August 2025.

3 ways the 15% tariff could affect EU sellers

1. Margin pressure and rising prices

Even at the reduced rate, tariffs raise landed costs significantly. For SMEs, absorbing the increase is often unviable, and passing it on to customers risks pricing products out of the market.

Example: A €100 product becomes €115 at US customs before VAT, shipping, or platform fees.

2. Compliance burdens and delays

Tariffs often come with stricter customs checks, documentation requirements, and possible port delays, creating particular headaches for DTC e‑commerce sellers using Fulfilment by Amazon (FBA) or other 3PLs.

3. Supply chain adjustments

Some exporters are exploring moving final assembly outside the EU, or leveraging customs valuation strategies such as the First Sale rule. This rule can reduce the declared value subject to duty, but requires rigorous compliance.

EU sellers should take these next strategic steps to avoid reactive decisions once tariffs are imposed.

✅ Mitigating the tariffs: the 5 strategic actions for EU sellers to take now

1. Review HS codes and origin classification; audit your US export portfolio

Ensure all products are correctly classified under the Harmonised System (HS). Misclassification can lead to incorrect duty application or rejection at customs. Where applicable, sellers should also examine Rules of Origin under preferential trade schemes like the EU-US Mutual Recognition Agreement (MRA).

An audit will give you clarity on how exposed your business is and where to prioritise mitigation efforts:

• Identify which SKUs are at risk of tariff exposure
• Review export volumes and value per HS code
• Check for existing US market dependencies in your product line

2. Run landed cost simulations

Use tools to model pricing impacts under various tariff scenarios. Knowing your product’s full landed cost helps adjust pricing, margins or marketing accordingly.

3. Explore indirect representation

If you’re not registered in the US, appointing an Importer of Record (IOR) or customs broker like AVASK can reduce liability and ease entry barriers. This is especially useful for e-commerce sellers using DDP (Delivered Duty Paid) models. Tariff legislation is highly technical and often fast-moving – an experienced trade and tax adviser such as AVASK can:

• Ensure you’re up to date with state sales tax thresholds, which vary significantly
• Help you understand duty deferral schemes or tariff engineering options
• Identify opportunities under free trade agreements or preferential trade zones

4. Diversify your market and US fulfilment strategy

Reduce dependence on the US by expanding into markets like Canada, Australia, the Middle East, Turkey or Southeast Asia. In 2024, ASEAN countries accounted for over €150 billion in EU exports, offering fast-growing alternatives.

📦What to do if you’re using Fulfilment by Amazon (FBA):

• Reassess your inventory split across US warehouses
• Consider switching to Fulfilment by Merchant (FBM) or third-party logistics (3PL) to maintain more flexibility
• Explore bonded warehousing or drop-shipping models if your goods fall under the new tariff list

5. Monitor negotiations on tariffs

Stay informed via trusted sources like EUR-Lex (for EU legislation), USTR, and World Trade Organization dispute cases for updates on tariff scope or exemptions.

What about existing tax and duty obligations?

These new tariffs would be in addition to existing US import duties and state-level sales tax obligations. That could mean recalculating pricing, logistics costs, and profit margins for DTC sellers, particularly for fast-moving consumer goods.

❗A reminder: EU-based sellers into the US must already comply with federal requirements such as:

• FDA regulations for food and cosmetics
• US labelling laws
• where applicable, state-level sales tax collection via marketplace facilitators like Amazon and eBay

AVASK are well-placed to give you strategic advice on navigating US requirements.

US-EU tariffs: your 4 key takeaways

1. Most products now face a fixed 15% tariff, offering a more predictable cost baseline, though still substantial compared to prior average tariffs.
2. High‑tariff sectors, such as steel, aluminium (50%) and autos/parts (25%), remain significant cost burdens.
3. Strategic goods, like pharmaceuticals and semiconductors, are exempt, offering a competitive edge in those categories.
4. Wine, spirits, and other luxury goods still incur the 15% tariff, which may pressure margins and pricing.

Act now to ease the effects of tariffs

The threat of a 30% tariff may have been averted, but 15% still means a material increase in cost for EU exporters. By acting now – refining product pricing, tightening customs processes, and diversifying market exposure – you can protect competitiveness and margins in a shifting trade environment.

Article amended to reflect the recent developments as of 5 August 2025.