EU-U.S. trade agreement provides clarity, but tariffs remain painful: Dutch employers

The formal ratification of the trade agreement between the European Union and the United States on Thursday means that now there is at least some more clarity for businesses, said business organizations VNO-NCW and MKB-Nederland.

“However, maintaining the 50 percent tariff on steel and aluminum has a huge impact on companies in that sector,” the Dutch business lobby groups added. “A general 15 percent tariff on most European products also remains a particularly painful measure.”

The business organizations did say it was a “good step” that certain products of this 15 percent tariff will be exempt from the fee from September 1, with both parties also agreeing to extend this list in due course. “It is also of great importance that the US and the EU continue close talks to work toward what they themselves call ‘restoring stability and predictability in mutual trade and investment.’”

VNO-NCW and MKB-Nederland have previously emphasized that the EU must continue working to strengthen its own competitiveness and the European internal market. In doing so, Europe should also focus on trade agreements with countries other than the US.

Evofenedex, which represents the trade and logistics interests of thousands of companies in the Netherlands, still lacks some clarity. “The Joint Statement is more of a confirmation of the agreements,” the organization said in a statement. For Evofenedex expert Casper Roerade, it is not yet entirely clear which European products will receive exemptions. “We hope that clarity will come soon and that it will be implemented quickly.”

The technology industry also stated that they were pleased with the formal ratification, a spokesperson for the business association FME said. Despite this, they feel there are still “snags and issues” with the deal.

An example of this is the import tariffs on chips and chip-making equipment. This technology is not exempt from tariffs, with a 15 percent charge for imports. “A huge shame,” the spokesperson said about this part of the deal.

In addition, the FME lamented the lack of clarity about goods that do not fall under the 15 percent import tariff list. “These are in the grey area,” the spokesperson said. This would be referring to products like solar panels and drones.

The pharmaceutical industry also said that it would have been better if there were no US import tariffs on medicines at all. This was stated by the trade associations Association of Innovative Medicines (VIG) and Biosimilars and Generic Medicines Industry Netherlands (Bogin).

At first, there was uncertainty surrounding tariffs on pharmaceutical products. On Thursday, it was announced that the 15 percent import tariff fee also applies to pharmaceutical items, and that generic medicines will receive an exemption starting September 1. Generic medicines are often considered a cheaper alternative to brand-name drugs. “A tariff always works to the detriment of patients,” says a spokesperson for VIG.

The exemption for generic items is a boost for the sector. But according to the chairwoman of Bogin, Jean Hermans, exports to the US are only important for a few Dutch products. “No tariffs means that American patients can continue to access generic medicines at an affordable price.”