How to avoid tariffs and benefit from the U.S. Market

Since the elections in November 2024, the U.S. has changed significantly from its previous course of a globalized economy. The U.S. faces significant economic challenges, like fast-growing interest payments, high trade deficits with many countries, and other vital issues.

President Trump signs executive orders to implement tariffs on foreign products (Source: White House)

President Trump indicated multiple times in his first term and at rallies for the 2025 elections that he wants to make significant changes if he becomes president. Reducing taxation and increasing the U.S. manufacturing rate are vital topics for the current administration to act on. Since President Trump was elected, the global markets have been sensitive to executive orders. The world faces the first wave of economic disruption caused by these presidential executive orders, which should be seen as a wake-up call.

"Liberation Day," on April 2nd, indicated what would happen in the next four years. U.S. citizens will benefit from lower taxes due to a smaller government and a significant increase in local manufacturing. In the following years, the U.S. government will be funded by an external revenue service that is currently in development. This substantial shift from funding a government instead of its citizens through tariffs is possible; the year 1913 is mentioned when the income tax was implemented for the first time.

Business owners wanting to participate in the U.S. market must understand how the future will look and act accordingly. President Trump mentioned that trade deficits must be reduced, especially with the European Union. If companies want to participate in the U.S. market, they should come to the U.S. The corporate tax rate will be reduced if products are manufactured domestically. Competitors face high tariffs if they import products from abroad.

In summary, European companies should develop a U.S. branch to avoid U.S. tariffs because manufacturing locally bypasses import duties, such as the 25% tariffs on vehicles or steel, ensuring cost-competitive access to the world's largest consumer market. This strategy also hedges against escalating trade tensions, as seen in recent EU-U.S. tariff disputes, and supports long-term market stability. 

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