US Tariffs 2025: Impact on European Gear Producers

maggio 21, 2025

How will the new 2025 US tariffs affect European gear manufacturers?

The new 2025 US tariffs present significant challenges for European gear and gearbox producers. With a 10% import duty on most goods and an additional 25% on automotive components, European companies must rethink their export strategies to the U.S.

What changed with the 2025 US tariffs?

On April 2, 2025, the US government announced a 10% general tariff on nearly all imported goods, including mechanical components such as gears and splined shafts. This policy, named "Liberation Day Tariffs," came into effect on April 5. Starting May 3, an additional 25% tariff applies to components intended for the automotive sector, except for goods that meet USMCA standards.

Direct impact on gear producers

European gear producers are already feeling the pressure. Many report decreased price competitiveness, slowing orders, and shifts in demand toward local or non-EU suppliers. The additional 25% tariff on auto-related parts complicates things further, requiring detailed customs and technical reviews for each shipment.

Strategic responses for European companies

To remain competitive, European manufacturers can consider:

Maintaining a local presence in the US: Light operations like final assembly, local agreements, or post-sales service can mitigate tariff impacts.
Focusing on high-value segments: Shifting toward markets where quality and technical expertise outweigh pricing.
Exploring USMCA exemptions: Carefully evaluating whether goods can qualify for reduced duties under trade agreements.

Looking ahead

While the 10% tariff puts pressure on margins, it doesn't close the US market entirely. If tariffs on Asian imports remain higher or unchanged, Europe’s relative position might not worsen dramatically. This is a time for adaptation, not panic.

Ultimately, a 10% cost increase is unlikely to trigger large-scale industrial reshoring in the US. We may see disrupted supply chains—but without a viable domestic manufacturing alternative being built.

The takeaway? The rules have changed, and informed, strategic responses are essential. The challenge is real—but so is the opportunity to adapt.

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