“Liberation Day” Tariffs: How Finnish Companies Should Adapt to the New Trade Landscape

On April 2, 2025, President Donald Trump announced a new economic policy dubbed "Liberation Day," implementing widespread tariffs on imports to assert U.S. economic sovereignty. The policy introduces a 10% baseline tariff on all imported goods, with higher duties targeting specific countries, including the European Union, in addition to existing tariffs on Canada, Mexico, China, aluminum, steel, and vehicles. However, significant exemptions remain, particularly for key trading partners and industries, which could mitigate some of the economic impact.

With the U.S. position now clarified, attention will turn to global responses. Trading partners, including China and the European Union, have promised to implement countermeasures, while some nations, like Vietnam and Israel, have already reduced their own tariffs on U.S. goods. The White House has hinted at the possibility of easing tariffs in exchange for reciprocal trade concessions, potentially leading to a broader reduction in global trade barriers. Despite the immediate market turbulence, the long-term outcome of these negotiations remains uncertain.

The European Union is preparing its package of countermeasures to U.S. tariffs, which according to the Commission will be finalized shortly. These additional measures will be on top of the measures by the EU in response to the U.S. steel and aluminum tariffs announced already in March. Increasing tariffs will indirectly shift global trade flows and may result in an oversupply of goods from third countries in the markets of the European Union. This could lead to further rounds of restrictive trade measures, such as the imposition of anti-dumping duties by the European Union. Finnish companies operating in or exporting to the U.S. should closely monitor tariff changes and assess whether their products could be affected. Those relying on U.S. supply chains may also need to reconsider sourcing strategies or explore exemptions that could reduce cost impacts.

Given the changing trade landscape, Finnish companies with significant U.S. exposure should also consider shifting parts of their manufacturing operations to the U.S. to avoid tariffs and ensure market access. This can be done through greenfield investments – building new facilities – or through brownfield strategies, such as acquiring existing U.S. companies to integrate production. Establishing a local presence could help mitigate trade risks while also positioning companies closer to key customers and benefiting from potential regulatory incentives. Careful evaluation of legal, financial, and operational factors will be essential in determining the best approach for long-term success in the U.S. market.

If you have any questions about this Legal Alert, please feel free to contact the undersigned or your regular Borenius contact.