The impacts of US Tariffs post 9 July pause

In today's international trade environment, volatility has become a defining characteristic, largely due to the tariffs imposed by the United States. These tariffs, both global and industry-specific, have significantly disrupted operations for multinational corporations and small to medium-sized enterprises. While they primarily impact supply chains importing into the United States, countries importing products from the United States are also impacted due to retaliatory tariffs and ongoing trade deal negotiations.

EU companies exporting to the United States must navigate the complexities of understanding to which of their products these tariffs apply, how these tariffs may overlap, which tariffs are currently paused, which products are excluded, and any potential retaliatory measures applying.

Mitigating these tariffs and ensuring long-term supply chain resilience requires a coordinated, cross-stakeholder strategy.

On Wednesday, 6 August, KPMG organized the webinar “The Impacts of US Tariffs Post 9 July Pause.” It examined the significant developments following the end of the 9 July pause on country-specific reciprocal IEEPA tariffs imposed by the United States. The pause, which began on 10 April 2025, offered temporary relief amidst a volatile tariff landscape, as well as the facilitation of trade deals between the United States and impacted countries.

As the deadline approaches, uncertainty looms over whether the pause will be extended or lifted, with potentially varied and significant impacts on companies. While trade deals between the likes of the United Kingdom and China were completed - or nearing completion – the future remains unclear for the EU. Will a trade deal be made or will EU exporters to the United States face tariff rates of 20% or even 50%, as previously threatened by President Trump. 

During this webinar we explored the following topics:

Tariffs are applied on the customs value of imported goods, so organizations should ensure their pricing aligns with valuation rules. Reviewing your current valuation methodology and breaking down the cost components of imported goods can minimize the dutiable value and reduce overall duty payments.

Optimizing the origin of goods is important, as assembling products in one country with foreign components may not confer origin. Businesses should assess the “last substantial transformation” rule and consider production changes to shift origin to lower-tariff jurisdictions, while ensuring compliance with economic reality.

Accurate classification of goods under the Harmonized Tariff System (HTS) codes can lead to reduced duty rates. By ensuring precise and strategic classification, businesses can avoid overpayment and capitalize on favorable tariff treatments.

A well-structured contractual framework can help lower customs duty impact by clearly defining liability and incorporating clauses. Mindful provisions provide flexibility and legal protection, making it essential to analyze and tailor contracts to the specific commercial relationship.

Building resiliency into supply chains through dual sourcing, nearshoring, or regional hubs can reduce reliance on high-tariff trade lanes. Strategic sourcing reviews should factor tariff costs into total landed cost models to optimize supply chain decisions.

Duty deferral or suspension mechanisms such as US Foreign-Trade Zones (FTZ), bonded warehouses, and Duty Drawback can reduce or defer duties. Companies with cross-border manufacturing or distribution should consider applying for authorizations to utilize these regimes.

During this webinar we provided insights into:

1. Review of the pause: Examining the current state post-pause on tariffs and its implications for businesses and international trade.
2. Long-term impact analysis: Exploring potential long-term consequences for industries affected by the reinstatement of tariffs.
3. Mitigation strategies: Discussing actionable strategies to navigate and mitigate the challenges posed by the renewed tariff policies.

If you missed the webinar or would like to revisit it, we invite you to watch the recording and download the slides.