Right now, we are seeing trade policy shift rapidly, not least in the relationship between the US and the EU. In August 2025, the US introduced a general 15% tariff on most EU goods and removed the so-called de minimis exemption, which means that even small shipments now need to be declared and are subject to tariffs. This directly impacts companies, resulting in higher costs and increased administrative burden.
To be stronger in an uncertain environment, you can:
Use clauses in agreements that allow you to adjust prices when tariffs or taxes change. For recurring customers, you can include a clause such as: “The price will be adjusted in the event of changes in tariffs.”
Add a safety margin to your prices to account for smaller fluctuations. Conduct a risk analysis: how much can tariffs vary, and how much can your margins tolerate?
Follow updates from customs authorities and any new trade agreements.
A dynamic pricing model adapts prices continuously as tariffs change. However, this requires customers who are used to fluctuations. With a fixed-price model that includes a risk premium, you take on the risk and incorporate it into the price. This makes it simpler and more predictable for the customer, but could make you less competitive if tariffs are reduced.
By explaining that the price is affected by external factors, you can avoid surprises for the customer. If you use separate lines on the invoice for “product price” and “tariff/VAT,” it becomes clear what your price is and what the government fees are.
Consider switching the supplier country to reduce costs.
An important aspect to keep in mind is that it is not allowed to manipulate transfer prices to reduce tariffs. Transfer pricing must always reflect actual market values and comply with international rules. Instead of adjusting prices, you can work with other strategies, such as:
Check that goods are correctly classified. Incorrect codes can result in higher tariffs. Sometimes alternative codes exist that are still correct but have lower tariffs. A customs specialist or freight forwarder can be valuable in finding the best solution.
Verify if your products are eligible for special tariff advantages. By using the right agreements, you can reduce or completely avoid tariff costs:
USMCA: The free trade agreement between the US, Mexico, and Canada, which promotes duty-free trade for goods produced in the region.
WTO provisions: The World Trade Organization manages rules for international trade. Non-discrimination is a central principle of the WTO, meaning that all member countries must be treated equally.
Rules of origin: Verify whether your products meet the rules of origin required to qualify for tariff exemptions or reductions under various trade agreements.
Consider whether parts of the production can be relocated to a country with more favorable trade agreements. In some cases, even limited processing in another country can change the product’s origin and lower tariffs.
Utilize customs warehouses in the US, where goods can be stored without incurring tariffs until they are released into the market. This improves liquidity and may reduce tariff costs if goods are re-exported.
Review who should bear the tariff cost – seller or buyer. In some cases, it may be advantageous to change Incoterms, e.g., to Free Carrier (FCA) instead of Delivered Duty Paid (DDP).
If goods are imported into the US and then exported again, you can apply for a refund of tariffs.
Keep documentation correct and up to date, as both tariff and tax regulations are strictly monitored in the US.
You should have a transfer pricing policy that follows the arm’s length principle, which means that prices between related companies must be the same as if they were independent. Setting an abnormally low price to reduce tariff costs can cause problems during customs audits—such as adjustments, penalties, or even goods being held at customs. The IRS also monitors transfer pricing to prevent profits from being shifted across borders.
We help you find the right strategy for pricing, contracts, and customer dialogue—so that you can focus on business, even when conditions change quickly. Don’t hesitate to contact us at PriceGain by clicking the button below!