Relevance of origin and stable supply chains
22/01/26
On 17 January 2026, Donald Trump announced on his social media platform Truth Social potential new import tariffs of 10 percent that may increase to 25 percent later this year, targeting the Netherlands and several other European countries due to their involvement in a military mission in Greenland. Even though we have now learned they will not be implemented immediately, it shows again how important it is to have insights and be prepared.
On the other hand, new opportunities arise due to the recent signing (awaiting approval of the EU parlement) of the EU-Mercosur Partnership Agreement (EMPA), stimulating trade between the EU and four South American countries.
For the potential tariffs and the EMPA knowing the origin of your products is very important.
What does this mean for your organisation?
These new developments envisage again the importance of origin management. Companies that acted during the previous wave of tariffs and have a clear picture of their supply chains and clear insights into the origin of their products, are ahead of the curve. Even more so because the latest tariffs Trump has threatened with are country-specific and not for the European Union as a whole. For companies that do not have a clear understanding of the origin of their products, it is never too late to act and now would be the time to do so.
The EMPA is beneficial for your organisation if it trades with any of the Mercosur countries - Brazil, Argentina, Paraguay, or Uruguay. Under the EMPA, import duties on trade between the EU and these four countries will be reduced or eliminated, provided that the correct proof of origin is presented at the time of importation.
Non-preferential origin
In relation to singling out the individual EU countries it is important to note that the non-preferential origin is relevant in case of the potential additional tariffs. In the import declaration it will be important to mention the exact EU Member State (like for example BE for Belgium) instead of EU. And as always it is important that your organisation will be able to substantiate that non-preferential origin. If there is no evidence, the worst-case scenario will be applied.
Preferential origin
Due to the uncertainty in relation to the US market, the European Union is looking for trustworthy trading partners. EMPA is a prime example of this policy as well as the Free Trade Agreement with India that is expected on short notice.
In these cases, the preferential origin is of importance, which can lower or even reduce import duties to zero. Again, only in case the correct origin documentation can be provided at import. Also here it is important for your organization to be able to substantiate this origin.
In relation to EMPA, there might be a delay in implementation due to the vote in the European Parlement yesterday, however it will still be wise to start looking at the potential it might bring your company. Especially if your products at this moment do not comply with the rules to obtain preferential origin. A review of the condition under which they would comply, might be worth the effort. It sometimes is as easy as sourcing more locally in one of the partner countries for example.
Conclusion
There are several things you can do to help your organization profit from the more stable relationships that the European Union is building for its companies. Make sure you:
- have insight into your flows,
- stay up to date on the latest developments,
- see how your organization can profit/defend itself against these developments, and
- ensure you have your origin management in order.
This will create more certainty and provide possible access to lower import duties.
How can PwC assist
At PwC, we have extensive experience supporting companies in reviewing their supply chains and origin management. This includes reviewing the origin of your products, your procedures around origin, and your supply chains to see whether with some adjustments preferential origin could be claimed as well as assist with the implementation of software supporting your origin management.
Please feel free to contact us, we are always happy to arrange an initial conversation on how we could support in a way that best suits your organization.
Contact us
Suzanne Bras
Senior Manager Customs & International Trade, PwC Netherlands
Tel: +31 (0)65 395 86 76
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