The impact of US trade tariffs on imports from the European Union is being felt in here Belgium. Between May and July, exports from Belgium to the US fell by 12%. The fall in exports to the US primarily affects manufactured goods.
Based on current data from the National Bank of Belgium VRT NWS has found that exports to the US of cars produced in Belgium have fallen by almost half since the Trump administration increased import tariffs. Meanwhile, the chemical industry has recorded a 30% fall in exports to the US, while pharmaceutical industry has seen a 20% drop in exports to the United States.
Although the increase in import tariffs has made goods produced here more expensive to US customers, this is not the only reason for the very sharp fall in exports to the States in the three months between 1 May and 31 July compared with the previous quarter. During the months prior to the imposition of the new tariffs, companies exported far more than usual to United States in order to get as many products as possible across the Atlantic before the new import tariffs came in to force. This means that warehouses in the US are currently well stocked.
Furthermore, given the US president’s tendency to sometimes change tack quickly, some companies in Belgium and the rest of the EU are waiting to see if further changes are made to the tariffs and other import formalities before they export any more of their goods to the United States.
The National Bank of Belgium says there is also a lack of clarity regarding how the US authorities judge which products are subject to which tariff and it is also unclear which products the US Customs consider to belong to which branch of industry.