October 1, 2025
Avoiding Costly Tariffs
By rerouting shipments directly from China to the EU and UK, US firms can avoid the hefty US import tariffs, reduce overall expenses and maintain competitive pricing in international markets. While these goods still face tariffs and customs duties when entering Europe, the rates are often lower or more favourable compared to the US tariffs.
This trend not only reflects businesses’ adaptability but also highlights the unintended consequences of trade protectionism. Companies that once relied on importing goods into the US before redistributing them globally are now restructuring supply chains and market strategies to remain competitive.
New Opportunities
The EU and UK markets are proving attractive markets for US companies expanding into new territories. E-commerce businesses in particular—using platforms such as Amazon and third-party logistics (3PL) warehouses—are driving this shift.
While the new market offers promise, there are import implications that non-domesticated companies need to be aware of. Such as who will act as the Importer of Record? How should VAT be charged, reported and reclaimed? Is a responsible person required? These complexities can be explained, supported and solved via the Fiscal IOR team, which helps businesses navigate local requirements and optimise cross-border operations.
Looking Ahead
As global trade adapts to changing tariff regimes, companies are expected to continue exploring innovative logistics strategies to minimize costs and maximize market access. With the correct support for US businesses, the decision to ship China-sourced goods directly to Europe or the UK marks a pragmatic response to the evolving trade environment—one that may help reshape international commerce in the years to come.