Tariffs Are Hurdles, Not Walls: Why the USA Is Essential for EU Tech

In recent weeks, we've heard plenty about European companies approaching US exports with caution. This raises the question: Are the latest tariffs truly dampening the enthusiasm and export drive of European tech companies?

The facts tell a different story: Bilateral trade volume between the EU and USA reached over $1.2 trillion in 2024. While it's true that electronics and electrical engineering products face an average of 15% additional tariffs, this hurdle becomes relative when you consider the US automation market exceeds $58 billion with projected annual growth of >10% through 2030.

In my career as Chief Executive Officer of an Austrian company in the USA, we deliberately chose to adjust list prices to compensate for both tariffs and currency fluctuations. Our customers generally accepted these price adjustments – out of perhaps 100 customers, only one raised critical questions about the price increase.

This demonstrates that there's genuine awareness and acceptance of higher list or market prices in the current US tariff environment. For European companies exporting to the USA, this means the market still offers tremendous potential for new business, even though tariffs may dampen subjective perceptions of the US market.

The Americas Factor: More Than Just the USA

As described in previous posts, the US market has historically proven itself through higher margins and market prices. What many overlook: US trade with Latin America reached over $800 billion in 2024, with Mexico alone accounting for over $600 billion.

This means European manufacturers still have massive opportunities to gain market share with niche products that aren't locally established. Often, opportunities through the USA lead to projects in South America, Central America, or even Canada, as manual value creation continues in lower-cost countries while Intellectual Property (IP) remains managed in the USA.

Concrete numbers: The Brazilian automation market is growing at 8.5% annually, Mexico's industrial sector shows 12% growth potential, and Argentina is investing heavily in infrastructure modernization. With a strong US footprint, manufacturers demonstrate their commitment to the entire North and South American market, while proximity to markets like Mexico, Peru, or Argentina makes future projects and customer inquiries easier to handle.

The Future Starts Now

Even though the Trump presidency has made tariff and trade policy highly uncertain, the outlook for 2028 suggests a new landscape that will create fresh opportunities for foreign companies. The extent remains unknown, but tech companies from abroad must lay the foundation now for their future in the USA and throughout the Americas.

The Bottom Line:

One thing is certain: US consumers and customers aren't waiting for foreign manufacturers and importers to absorb the costs of their president's tariff policies. Those who hesitate today lose market share tomorrow to those already on the ground. The American market doesn't forgive passivity – but it rewards presence. And in a market expanding by over 10% annually, waiting doesn't mean standing still – it means falling behind.

The question isn't whether to establish your US footprint, but when. Your future competitors have already made that decision.