US tariffs: Short term optimization – medium-term preparation

The special import tariffs announced by the US government at the beginning of April 2025 were suspended again for 90 days a few days later. This zigzag development illustrates the political unpredictability of the volatile transatlantic trade policy.

Even if there are currently (as of April 16, 2025) no acute additional burdens for companies, it is clear that customs duties are not a marginal issue – they equally affect operational and tax structures.

In this situation, a two-stage approach is recommended:

• In the short term, operational relief potential in customs law should be identified and utilized. 
• In the medium term, structural consequences for transfer pricing, VAT and international tax law should be examined and strategically prepared for.

Short-term response: customs optimization

Even without acute customs pressure, it is already possible to identify customs structuring options with an economic impact. A status quo analysis helps to realize potential savings without far-reaching structural changes. 

Customs duties and customs value

• Customs tariff number / classification: Review of the tariff classification; if necessary, application for binding tariff information.
• Customs value: Reduction through clear separation of additional charges (licenses, transport, R&D).
• First Sale Rule: Application possible for imports into the USA - subject to strict formal requirements.
• Price adjustments: Economically necessary reductions must also be analyzed in terms of customs value.

Origin and production sites

• Justification of origin: Examination of whether a relocation is sufficient in order to establish a new origin under customs law.
• Free trade agreements: Use of preferential arrangements to reduce duties.
• Avoid circumvention: e.g., in accordance with Art. 33 UCC Delegated Regulation (see ECJ Harley-Davidson [C-297/23 P]).

Customs procedures and simplifications

• Customs warehouse: Deferral of duties, securing liquidity and delivery flexibility.
• Inward/outward processing: suspension or reduction of import duties for processing operations without permanent retention on the market
• Temporary admission: Reduction of import duties for temporary use, e.g. at trade fairs, in project business, etc.
• Use-related exemptions: e.g. check for trial goods or end use.

Medium-term preparation: Tax structural consequences of customs collection

If special customs duties are introduced permanently or again, they will affect the tax structure of many companies beyond the operational area. In these cases, a coordinated consideration of customs duties, transfer pricing, VAT and international tax law is required.

Transfer pricing

• Customs-related additional costs influence pricing within supply chains.
• A reduction in transfer prices may become necessary in order to maintain sales markets.
• In this respect, arm's length principles and tax documentation must be observed.
• In certain constellations, it makes economic sense to relocate functions or change supply routes – with corresponding tax implications.
• Exit taxation should also be considered when value creation is transferred abroad.

VAT

• New transportation routes can lead to registration and reporting obligations in other countries.
• Shifts in the place of performance, e.g. in chain transactions, have an impact on taxability.
• Import VAT, input tax deduction and compliance risks can arise in new supply relationships.
• VAT consequences must also be taken into account for non-affiliated companies.

International tax

• Exit taxation issues (Entstrickung) arise if the German right of taxation ceases to apply (e.g., in the event of a relocation of registered office or functions).
• Subsequent taxation of previous restructurings in the event of a breach of retention periods.
• Permanent establishment risks due to relocation of assets or foreign assignments of employees.
• CFC (controlled foreign corporation) rules for low-taxed foreign companies in accordance with Art. 7 AStG (German Foreign Transaction Tax Act).

These effects do not arise individually – they result from corporate reactions to customs policy developments. The integration of tax expertise into structural planning is therefore essential.

Conclusion

The suspension of the US special tariffs offers companies the opportunity to leverage potential under customs law – while simultaneously preparing structural options. The economic effect is considerable: while short-term measures have a direct impact on the tax burden, medium to long-term structural decisions are decisive for the tax burden and international competitiveness.

We support you in taking a coordinated approach to both levels – in terms of customs law, tax and strategy.