Aerospace & Defence: Managing Geopolitical Uncertainty and Tariff Avoidance
New US tariffs of up to 25% threaten European exports, particularly in the Aerospace & Defence sector, increasing costs and disrupting supply chains. The EU is responding by strengthening trade ties with alternative partners, but businesses must take proactive measures to mitigate risks. Our latest Strategy Paper explores the implications of these trade shifts and provides actionable strategies to navigate the uncertainty.
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How US Tariffs and Trade Shifts Are Reshaping the Industry
The transatlantic trade landscape is facing renewed turbulence. The US administration is proposing tariffs ranging between 10% and 25%, directly impacting European exports—especially in Aerospace & Defence. These measures could disrupt supply chains, increase costs, and strain NATO collaboration, creating significant challenges for businesses on both sides of the Atlantic.
What’s at Stake?
Higher costs for EU manufacturers due to increased tariffs on critical materials Inflationary pressures and weakened competitiveness for key exporters like Germany and Italy Strained US-EU Defence trade, making cross-border cooperation more expensive Trade diversification efforts by the EU, seeking stronger ties with Switzerland, Mexico, and Mercosur
How Can Businesses Prepare?
To mitigate risks, companies must act now by:
✅ Optimizing supply chains to reduce exposure to tariff-related costs
✅ Adjusting trade classifications to navigate regulatory complexities
✅ Exploring direct investments in the US to maintain market access
Key Insights & Strategic Actions – All in Our Latest Paper
Our Strategy Paper provides a detailed analysis of the situation and practical strategies to help your business navigate geopolitical uncertainty.
Contact Our Experts for Further Insights
If you have any questions or require a deeper discussion on the implications of US tariffs and shifting trade policies, our Aerospace & Defence experts are available to assist you.
Steffen Wenzel
Neil Jordan
