Reciprocal tariffs on imports to the United States

The U.S. President recently announced reciprocal tariffs on the importing of most goods into the United States, in addition to the existing normal tariff rates (unless specifically excluded). The tariffs affect more than 180 countries. A universal 10% tariff was applied to these countries on 5 April 2025. However, from 9 April 2025, tariffs are being imposed country by country, with the EU facing a 20% tariff when importing goods to the USA.

The United States has already introduced sector-specific tariffs, such as a 25% tariff on imported steel and aluminum products (effective 12 March 2025) and automobiles (effective 3 April 2025). A sector specific tariff rate of 25% on automobile parts is also expected to take effect in May 2025. The reciprocal tariff rates are not being applied to these products.

Meanwhile, the European Union is considering targeted countermeasures.

As a result of the increased tariff rates, exporting goods from EU member states like Hungary may incur higher costs when they act based on the incoterms as importer of goods into the United States.

Furthermore, importing goods of US origin into the EU could become more expensive if countermeasures are introduced at an EU level.

The increase in tariffs may also lead to disruptions in supply chains.

To mitigate the impact of the tariff rate increase in the immediate and near term, KPMG is happy to provide support in a number of ways. We can assist you with:

• Evaluating the potential impact of the new tariff rates
• Checking the customs valuation methodology to ensure accuracy, which may lead to lower customs values
• Assessing the options of transfer price adjustments, which may result in reduced customs values
• Reviewing the country of origin of goods, which may lead to lower tariff rates
• Investigating cost-saving methods to alleviate the effects of tariffs, outlining the necessary steps for adaptation and providing assistance in their execution
• Reviewing other options (e.g. bonded warehouse, temporary importation, etc.)

KPMG experts are happy to assist you in understanding and mitigating the impact of these challenges on your business.