How owning a Dutch business can help you avoid possible US-EU trade conflicts and high imposed tariffs

Intercompany Solutions is specialized in helping foreign entrepreneurs start a Dutch business, no matter where they are currently residing. Starting a business in a country that is a member of the European Union has many interesting benefits, for example, direct access to the European Single Market. The Netherlands, in particular, is known for its stable business climate, innovative perspective on business in general, and the ample opportunities for success it offers to foreign entrepreneurs. We have specialized ourselves in aiding foreign entrepreneurs to grow their businesses and make sure that everything runs smoothly.

Next to our standard Dutch company establishment services, we also offer many other services that can help you manage your company in a strong and stable way. We can help you out with administrative tasks, take care of your tax returns, offer legal and financial advice, and make sure you are compliant to Dutch and EU laws and regulations. We can also assist you in choosing the right company type and help you out with creating a solid business plan, if you need any form of financing.

Feel free to contact us anytime with any questions you might have; we are always happy to help and support you along the way. 

​What is the current issue between the EU and the US?

As you might have heard, since 2025, the United States and the European Union are entangled in a renewed trade conflict. Please keep in mind that our opinion on the matter is entirely neutral, and this article is meant to be informative, since we hold no political opinion whatsoever on the matter. We just want entrepreneurs to stay informed on the latest news regarding this subject. This conflict is mostly centered around tariffs on steel, aluminum, and various industrial and agricultural products. This escalation began on March 12, when the US reinstated 25% tariffs on EU steel and aluminum imports under Section 232 of the Trade Expansion Act whilst citing national security concerns. These measures now encompass a broader range of products, including household goods containing these metals. This makes it more difficult to freely trade and export these goods and has put many companies in difficult positions, unfortunately. 

The main goal is to impose higher tariffs on the countries with which the US has the largest trade deficits. Or, countries that currently impose heavy tariffs on US goods. Even though the only two EU member states in the top 10 are Ireland (4^th place) and Germany (5^th place), the higher tariffs might hit the EU as a whole. Right now, President Donald Trump has temporarily backed away from imposing steep levies on the European Union, two days after he threatened with 50 percent tariffs, there might still be a chance that this may impact the EU market negatively when it comes to doing business with the EU. Trump has now agreed to extend his deadline for trade talks until July 9, which is later than the June 1 deadline he set, after the European Commission president Ursula von der Leyen said there is more time needed to reach a good deal. Nonetheless, the issue hasn’t been resolved yet. 

The response of the European Union (EU)

In response to the United States’ decision to reimpose tariffs on certain EU products, the European Union has already come up with a counterstrategy. This is mostly aimed at protecting its industries and also signaling its readiness to defend its economic interests. The first part of this response involved reinstating tariffs that were initially imposed during the 2018-2020 trade tensions under President Trump's administration. At that time, the EU had targeted emblematic and well-known American products in a calculated move. These products were chosen not just for their economic value but also for their symbolic and political importance, representing American culture and industries based in states that were seen as politically significant. By reinstating these tariffs as of April 1, 2025, the EU aims to put pressure on US lawmakers by impacting American companies and workers in politically sensitive areas.

The second part of the EU’s strategy involves preparing a broader set of tariffs, which might be covering around €18 billion worth of US exports. This new wave extends beyond just the previously mentioned symbolic goods and, as such, targets a wider range of industrial and agricultural products. However, the EU is also proceeding carefully to avoid too-risky situations. Before finalizing the list, meetings are being held with stakeholders, industry groups, and member states. This approach allows the EU to negotiate its retaliation to maximize effectiveness while minimizing harm to European businesses and consumers. It also ensures that the EU remains legally compliant with World Trade Organization (WTO) rules, which strengthens its position (should disputes escalate into formal legal battles).

This response actually shows a broader strategic calculation. The EU is mainly trying to protect its domestic industries from the immediate harm of imposed US tariffs, to maintain leverage in any future negotiations, and to demonstrate that it can respond decisively to what it views as unjustified measures. It also shows other global trade partners that the EU is willing to defend its interests firmly in a shifting global trade environment, where old alliances are becoming more transactional.​

Implications for EU businesses

As you can imagine, these developments might have large and negative implications for certain EU businesses. Industries that are heavily reliant on exports to the US, such as steel, aluminum, automotive, and agriculture, face increased costs and potential loss of market share. For instance, European steel producers have already experienced a strong decline in US demand, with imports falling by around 36% following the initial tariff implementations. The automotive sector is also under pressure, with production output in Europe decreasing by nearly 12% compared to the previous year.​

The broader economic impact of these tariff issues includes disrupted supply chains, increased consumer prices, and more uncertainty for businesses operating across transatlantic markets. While both the US and EU have expressed openness to negotiations, the current stalemate suggests that businesses must brace for prolonged trade tensions and adapt their strategies accordingly.​ We will mention some notable examples of these implications below.

1. Disrupted supply chains

When certain tariffs are introduced or increased, many products become more expensive to import or export. This can cause delays or breaks in the flow of goods between countries, especially between the EU and the US, which are major trade partners. EU businesses that rely on raw materials, machinery, or components from the US may suddenly face difficulties getting what they need. This is because either the price has gone up or because fewer companies are willing to ship under those conditions. 

As a result, production can slow down or even stop entirely in some cases, which hurts not only the companies affected but also others in the chain. Businesses might need to find new suppliers, which takes time and effort and can lead to quality or reliability issues. In the worst cases, entire industries can suffer. For example, the automotive, electronics, and pharmaceutical industries, which all rely on complex, international supply networks. Small businesses are often hit the hardest, as they have fewer resources and less bargaining power to quickly adapt.

2. Increased consumer prices

Tariffs always raise the cost of imported goods. For EU businesses that rely on American products (whether this entails raw materials or finished goods doesn’t really matter), this means having to pay more. Often, those extra costs are then passed on to the customer, which makes everyday products more expensive. For example, items like clothing, electronics, or packaged foods might become noticeably more expensive in shops. Even local products can become more expensive if their production relies on imported parts from the US. Over time, this leads to inflationary pressure, which means that the general price level in the economy goes up. Consumers may respond by buying less, or looking for cheaper alternatives, which can hurt sales for businesses. 

In very competitive markets, especially where customers are sensitive to price changes, companies might not be able to pass on the full cost and may instead suffer reduced profit margins. That, in turn, can lead to cost-cutting measures, such as freezing hiring, delaying new projects, or even bankruptcy. So, when it costs more to import goods or raw materials due to tariffs, those extra costs usually get passed on to the customer. This can make EU-made goods less attractive, both at home and abroad. And it’s not just about luxury items either, because it covers everyday goods, which could be affected, making life more expensive for consumers and therefore reducing demand. Over time, this hurts business revenue and can then lead to layoffs or closures.

3. Heightened uncertainty for businesses

Next to the previous points, ongoing trade tensions between the EU and the US create a lot of uncertainty. This is because businesses don’t know how long tariffs will last, whether they’ll get worse, or if a future agreement might lift them. This uncertainty makes it difficult for companies to make long-term decisions. For example, a Dutch exporter may hesitate to sign a large contract with a US partner if they’re unsure whether tariffs will rise again in six months. Uncertainty also affects things like hiring, investments, and product development. Companies may also decide to delay launching new products or entering new markets because the environment feels too unstable. 

Financial planning becomes harder, too, and budgets and forecasts can be thrown off quickly by unexpected trade changes. Keep in mind that small businesses with fewer resources are even more vulnerable to sudden changes. In general, when businesses don’t feel secure, they tend to pull back. This can slow down innovation and growth and reduce confidence across entire industries. For entrepreneurs and startups, it may even discourage them from expanding internationally. You could therefore say that uncertainty is one of the biggest enemies of long-term business planning.

4. Loss of competitiveness in US markets

There are also consequences for US consumers when tariffs are imposed or raised on the import of EU goods, because these tariffs make products more expensive for American buyers. This gives local US companies a price advantage, even if the EU product is better or more popular. As a result, EU businesses may lose market share in the US, one of the world’s biggest and most valuable markets. For example, a German machinery maker that used to sell equipment to American farmers might find their machines suddenly too expensive, and American buyers may switch to US-made alternatives. 

This can lead to fewer orders, smaller profits, and, in some cases, a complete exit from the US market. EU brands may also have to cut their prices to stay competitive, which has a very negative impact on their margins. On top of that, building brand loyalty and trust in international markets takes time. If EU businesses lose their foothold in the US now, it may be hard to win customers back later. Even if or when tariffs are lifted. For many companies, maintaining access to the US is critical, and losing competitiveness is a serious problem that might be devastating to the future of the company.

5. Retaliatory tariffs on EU exports

As we already mentioned briefly before, in response to possible high US tariffs, the EU has introduced or threatened its own set of retaliatory tariffs. While this is a way to pressure the US into negotiations, it also creates extra challenges for EU businesses. For example, American companies may reduce their purchases of EU goods like wine, cheese, machinery, or fashion items due to the higher costs. This lowers export opportunities and can damage long-term trade relationships between otherwise solid partners. 

Some EU businesses might see a sudden drop in orders or have to deal with angry partners who can no longer afford to stock their products. Retaliatory tariffs can affect a wide range of industries, even ones that are not directly connected to the original trade dispute. So, as trade becomes more ‘politicized’, businesses unfortunately suffer the most because they become the collateral damage. In the end, this back-and-forth hurts businesses on both sides and slows down international cooperation. For EU exporters, retaliatory tariffs can mean missed revenue, lower production, and difficult conversations with investors or shareholders.

6. Delays in investment and expansion plans

When any international business climate becomes unpredictable due to trade conflicts, many companies choose to halt any current growth plans. EU businesses that were planning to expand into the US, build new factories, or invest in new product lines may put those plans on hold. This slows down growth and can give other competitors a chance to get ahead. For example, a Dutch company planning to open a US office might cancel the plan due to increased costs or market uncertainty. 

Even investments within the EU can be delayed if businesses are unsure how the trade conflict will evolve. Investors also tend to be more cautious in times of uncertainty, which can reduce funding for startups and new ventures. Over time, these delays can weaken innovation, productivity, and job creation. In the worst-case scenario, businesses that wait too long to expand may fall behind and lose their competitive edge in global markets. So while waiting might seem safe, it can also cost growth opportunities in the long run.

How owning a Dutch business can help you out in this situation

Even though what we mentioned above all sounds harsh and frightening, owning a Dutch company can actually be a very smart and profitable strategy. This goes especially for non-EU businesses that are looking to maintain or expand their access to the European market, amidst ongoing trade tensions between the EU and the US. By establishing a legal presence in the Netherlands, foreign entrepreneurs and companies can benefit from the country’s strategic location, open economy, and EU membership. This offers strong protection against the problems caused by possible international tariff disputes because you can still trade within the entire European Single Market. 

For example, if a US-based company needs to pay extra tariffs on goods exported to the EU, creating a Dutch subsidiary or branch can allow it to operate from within the EU itself. This approach can help avoid some of the tariffs that are imposed on non-EU exporters, as products produced in the Netherlands generally qualify as EU-origin goods (depending on any applicable laws or rules of origin). Furthermore, the Netherlands has long been recognized as one of the most business-friendly countries in Europe, offering a stable political situation, attractive tax structures, a highly educated and multilingual workforce, and an excellent physical and digital logistics infrastructure. This also includes access to Europe’s largest ports and airports. This all makes it easier for companies to import raw materials, manufacture or assemble products, and distribute them across the continent with almost no customs barriers or delays. 

So, in times of global trade uncertainty, having a stable base inside the EU can very much protect supply chains and provide stable access to over 400 million consumers. Also, owning a Dutch company greatly enhances your credibility and professionalism, which can help in building trust with European clients and partners. Thus, in short, for companies without an EU presence, setting up a business in the Netherlands offers not only protection from imposed tariffs but also long-term opportunities for growth and resilience. This especially goes for all countries that are mentioned in the list of countries that the US has the highest trade deficit with.

Our Dutch company establishment process

If you think starting a Dutch company might help you expand your global presence and solidify your position, then we are always here to help you with anything you might need regarding the matter. Our Dutch company establishment procedure is quick and streamlined, which is how we are able to start your business in just a few days without you even being here physically. By power of attorney, we can take care of all the formalities remotely for you. You will have instant access to the EU Single Market in no time and can start doing business almost immediately. All we need is some basic information, such as a valid ID, a business registration address, and a preferred company name. Once you can send us this, we take care of the rest for you.

What types of services can we offer you?

Intercompany Solutions has assisted hundreds of foreign entrepreneurs from over 50 different nationalities. Our clients range from small one-person startups to multinational corporations and everything in between. Our processes are aimed at foreign entrepreneurs, and, as such, we know the most practical ways to assist with your company registration. We can assist with the full package of company registration in the Netherlands:

• Company establishment in the Netherlands
• Opening of a local bank account
• Application for VAT or EORI number
• Application for a variety of permits
• Application for a visa or start-up permit
• Startup assistance
• Financial services
• Administrative services
• Secretarial services
• Legal assistance
• Tax and financial services
• Media
• General business advice

We are constantly improving our quality standards to continually deliver impeccable services. 

Intercompany Solutions can help you expand your presence worldwide

The Netherlands has always been a very safe bet when it comes to foreign business establishment. Maybe you currently own a business that might be hit very hard by possible US tariffs? Then it is worth considering opening a branch or subsidiary elsewhere, such as in Holland. You will definitely profit from all the country has to offer and a very stable and welcoming business climate. We can help you sort out everything, from establishing your company to opening a Dutch bank account and taking care of your tax returns. Please feel free to contact us anytime; we will happily help you further.