Growth Gameplay: How the New EU-US Trade Deal Can be your Opportunity

I recently read an interesting article by The Guardian and it had me thinking about EU tech companies in the US and what opportunities need to be seized right now. Here are my perspectives:

The dust has settled on one of the most consequential trade negotiations of the decade. Here's what every EU tech leader needs to know about navigating the new 15% tariff landscape. In case you want to learn more about the tariffs, check out this blog post.

The Deal That Changed Everything

So here's what went down: On July 27, 2025, at Trump's golf resort in Scotland (because of course it was at a golf resort), European Commission President Ursula von der Leyen and US President Donald Trump shook hands on a trade deal that's going to completely change how EU tech companies think about America.

Here's what we're looking at:

• 15% tariffs on most EU goods (could've been worse - they threatened 30%)
• $750 billion commitment for EU purchases of US energy through 2028
• $600 billion in additional EU investment pledges to the US
• Zero-tariff agreements on some stuff like aircraft components and critical raw materials

Trump called it "the biggest deal ever made". Von der Leyen said it's about "predictability and stability." But what does this actually mean for your tech company's US dreams?

What This Actually Costs You

If You Make Hardware in the EU: The New Math Can Be Tricky

Let's be brutally honest here. If you're manufacturing physical tech products in Europe, this 15% tariff just made your life more complicated. Here's the reality check:

Before: Your €10,000 industrial automation COGS  faced about 1.5% in tariffs  

After: Same equipment now gets hit with 15%—that's €1,500 extra

What this means:

• Your products are suddenly  more expensive for US customers
• You're going to have to eat some of these costs while passing others along
• Suddenly, having stuff made in the US doesn't sound so crazy anymore

Software Companies: You're Not Off the Hook Either

Sure, software doesn't get tariffed directly, but don't think you're immune:

• If your software needs specific hardware, those components just got 15% pricier
• Your US customers have less money to spend because everything else costs more
• Companies from non-EU countries just got a pricing advantage over you

Three Ways to Actually Deal With This

Option 1: Go Local (Or At Least Look Local)

The idea: Make more stuff happen in the US to avoid tariffs.

How to do it:

• Find US partners who can do your final assembly
• Source some components from US suppliers (the non-critical stuff)
• Set up a small R&D office that can claim "made in America" cred

Real example: One German IoT company I know manufactures their core chips in Germany but does final assembly and software setup in the US.

Option 2: Billed in the US - Built in the EU

The idea: This is my favorite approach. Through outstanding, local US customer service you can mitigate and overcome barriers caused by tariffs.

How to do it:

• Provide local, American tech and customer support
• Build customer mind-share by being present locally
• Partner with StateMinded to be your US liaison

Real example: An Austrian electronics company overcomes tariff pains by providing guided, transparent and local sales expertise while the products are still built in Austria. US customers are billed locally.

Option 3: Become a Software Company (Even If You're Not)

The idea: Shift your money-making from selling hardware to selling outcomes.

How to do it:

• Turn hardware sales into monthly software subscriptions
• Sell results instead of products ("We'll optimize your factory" vs "Buy our optimization hardware")
• Create platforms where hardware is just the gateway to high-margin services

Think about it: Instead of selling a €50,000 control system, what if you charged €5,000/month for optimization software that runs on whatever hardware the customer already has?

Option 4: Make Your US Partners Do the Heavy Lifting

The idea: Get your US partners to share the pain and help you grow faster.

Advanced moves:

• Revenue-sharing where partners invest in inventory and split tariff costs
• White-label deals where US companies slap their name on your products
• Joint ventures that create actual US companies
• Explore more in our latest blog post about the importance of reseller partners

The Currency Culprit

Here's something that's making this even more fun: the EUR/USD rate is sitting around 1.15, which means:

• The dollar is strong, making US expansion more expensive anyway
• That 15% tariff gets calculated in dollars, so currency swings hit you twice
• Even more so, experts say the EUR/USD rate will go to 1.20 until end of 2025. Now is the time to look at FX mitigation strategies

What smart companies are doing:

1. Locking in exchange rates with forward contracts
2. Creating natural hedges by earning dollars to offset dollar costs
3. Pricing customer contracts in euros whenever possible

Different Industries, Different Problems

Semiconductor and Electronics

You're getting hit hard. That 15% applies to chips, components, everything. Time to get serious about software licensing and IP deals. Find US distributors who'll share the inventory risk.

Automation and Industrial Tech Companies

Your big, complex equipment is getting the full tariff treatment. Focus on service contracts, training, and support - stuff that can't be tariffed. Consider US assembly for your high-volume products.

Software and Digital Services

You're mostly okay directly, but your hardware partners are hurting. This might actually be your chance to grab market share from hardware-heavy competitors.

Your 90-Day Game Plan

Week 1-2: Figure Out How Screwed You Are

• Calculate what 15% tariffs + FX issues actually cost you across your whole product line
• Model different pricing scenarios with your US customers (e.g. Direct, OEM, White Label)
• Figure out which products still make sense to sell

Month 1: Reality Check Your Position

• Look at how you stack up against US and non-EU competitors now
• Ask your existing US customers how price-sensitive they really are
• Decide if you can still justify premium pricing

Months 1-3: Supercharge Your Partnerships

• See which of your current US partners can help shoulder the tariff burden
• Find new partners with deeper pockets
• Explore white-label opportunities

Months 2-4: Evolve Your Value Prop

• Find the software and service goldmines hiding in your existing products
• Build subscription models or pay-for-outcomes pricing
• Create US-specific pitches that justify higher prices

Months 3-6: Get Local Fast

• Look into US assembly, distribution, or light manufacturing
• Explore joint ventures with US partners
• Consider buying a small US company for instant local presence

How Tariffs Can Create Opportunities

15% tariffs don't feel like opportunities. But hear me out:

Market consolidation is coming: Other EU competitors might bail on the US market, leaving more share for you.

Innovation gets accelerated: Cost pressure forces you to innovate faster and focus on high-margin, differentiated stuff. Good tech sells!

Partnerships become strategic: Your US partners just became way more valuable. Joint ventures and local operations now give you real competitive advantages.

The Bottom Line

This 15% tariff isn't the end of your American dreams - it's just a new cost of doing business. But here's the thing: losing access to a $25 trillion economy would be way worse than paying 15% more to play in it.

The companies that win will be the ones who see this as a chance to build better, more sustainable, partnership-driven approaches to the US market.

Simple math: 15% tariff hurts, but abandoning America wouldn't be worth the risk.

Reality check: Evolve your strategy or watch competitors take the opportunities they're too scared to chase.

Timing matters: Most details are still being hammered out, so early movers get the best partnerships and local presence deals.

Ready to adapt your US strategy for this new reality? StateMinded's frameworks have helped EU tech companies nail US market entry.

Let's Talk America →

About StateMinded

We help EU tech companies win in America through expert guidance, proven frameworks, and a network of trusted US partners. Our knowledge base has battle-tested strategies for market entry, partner sales, and successful scale-up.

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