While the political debate centres on geopolitics, the more immediate issue for businesses is how origin-based tariffs would be applied across deeply integrated European supply chains. Components and materials often cross multiple borders before final assembly, leaving many organisations uncertain where tariff exposure truly sits, particularly beyond Tier-1 suppliers.
Steffen Schulze Selting, Vice President, Value Engineering at Sphera, told us, “tariffs are being used more frequently as a tool within global trade, and supply chains are where the consequences are most immediately felt. For businesses operating across Europe and the UK, the challenge is not simply the headline tariff rate, but the complexity that sits beneath it.”
Trade policy issues
“Highly integrated supply chains mean that materials often cross multiple borders before final assembly. When tariffs are applied based on country of origin, many organisations struggle to determine where exposure truly sits, particularly beyond Tier 1 suppliers, where direct commercial relationships end, and reliable origin data becomes harder to obtain. That uncertainty makes it difficult to assess risk at pace.
“The backdrop to this is a shifting global trade map. Climate-driven changes in the Arctic are opening up new potential shipping routes via Greenland, shortening transit times between Europe and Asia. Control and access to these routes will carry long-term implications for global supply chains well beyond the immediate geopolitical debate.
“If the current tariff threat results in escalation, it would add pressure to supply networks that are already managing climate risk. Understanding where goods originate and which products or regions are most exposed is critical to assessing cost exposure and operational impact when trade conditions shift.”
