European companies are hastening their exports to the United States, driven by concerns over potential increases in customs duties following the current 90-day suspension. Many businesses had already prepared for the imposition of a 10% surcharge, expediting container shipments earlier this year. The port of Antwerp has reported a 3% rise in container exports to the US in the first quarter compared to the same period in 2024.
Among the sectors most affected by the anticipated rise in US customs duties, European steel exports from the Belgian port increased by 2%, while vehicle exports saw a 1% uptick in the first quarter compared to last year. The unpredictability of policy changes under the current US administration has prompted European exporters to act swiftly.
Some companies are proactively shipping their goods ahead of any new customs impositions. However, the overall impact on the port’s different segments and categories remains limited. As a crucial trade hub, Antwerp, Europe’s second-largest port after Rotterdam, plays a significant role in transatlantic commerce. The United States ranks as its second-largest trading partner, with nearly 28 million tonnes of goods exchanged last year.
Key exports from Europe to the US through this port include vehicles, machinery, pharmaceuticals, chemicals, steel, and food products. Conversely, imports from the US consist of plastics, chemicals, cars, food, and pharmaceuticals. Port authorities are vigilantly monitoring future developments in customs duties and geopolitical tensions that could disrupt supply chains.
There is speculation about whether Europe might become a more prominent export market for China, should tensions with the US escalate. This possibility remains under observation, as historical precedents suggest such shifts are feasible. Meanwhile, the World Trade Organization has adjusted its global trade outlook, cautioning that ongoing trade conflicts between the US and China could hinder trade and economic growth in the long term.
The Evolving Landscape
The potential increase in US customs duties could have significant implications for European exporters and their American counterparts. For companies that rely on transatlantic trade, the evolving landscape may necessitate strategic adjustments to mitigate the impact of higher tariffs. This could involve diversifying export markets or re-evaluating supply chain logistics.
For consumers, any increase in customs duties might lead to higher prices for imported goods, affecting purchasing decisions and overall market dynamics. Industries such as automotive, steel, and pharmaceuticals could experience shifts in competitive positioning, influencing job markets and economic stability. The broader trade tensions may also prompt governments to seek new trade agreements, reshaping international trade norms and practices.
