- On 7 August the new US reciprocal tariffs took effect.
- Switzerland, India and Brazil were among the countries with especially high rates.
- It is wise to review contracts, Incoterms and who bears each cost.
On 7 August 2025 the new US reciprocal tariffs took effect, with especially high rates for countries such as Switzerland, India and Brazil. After months of announcements, letters, pauses and negotiations, what had until then been a threat or a promise became a reality that showed up at customs and in invoices. For small and medium-sized firms that import or export regularly, the change is tangible and requires updating cost calculations.
That transition, from threat to application, has an important practical effect: it forces companies to stop working with hypotheses and to calculate with real figures. Those who had waited to see what happened could no longer do so, and those who had moved ahead with preventive measures could finally check whether their assumptions had been right. In both cases, the information available was now more concrete than in previous months and made it possible to decide with fewer assumptions.
From threat to reality
After months of announcements, letters and pauses, the new US reciprocal tariffs finally took effect on 7 August. Some countries, such as Switzerland, India or Brazil, became subject to especially high rates, which suddenly changed their position as suppliers to the US market.
A high tariff on one country affects not only its exporters but also the US importers who depend on them, who see their costs rise or have to look for alternative suppliers. In turn, competing countries may be favoured if their tariff is lower, which reorganises whole trade flows. That reorganisation tends to be gradual, but its effects can last for years once buyers have changed supplier.
A redrawn trade map
The map of world trade was redrawn. When tariffs change unevenly between countries, which origin is most competitive for the same product also changes, and buying and selling companies reconsider their routes and suppliers.
For a Spanish or European company, the new map matters in two ways: directly, if it exports to the United States, and indirectly, if it competes with products from countries whose position has changed, or if it buys components whose origin is now dearer or cheaper. It is wise to look at the whole map and not only at one’s own tariff. A useful tool is to compare the cost of the same product from different origins and see how the relative advantage has changed.
Contracts, Incoterms and costs
For companies with suppliers or customers in those countries, it was time to review contracts, Incoterms and who bears each cost. Incoterms are the clauses that allocate between seller and buyer the costs and risks of transport and customs; setting clearly who pays the tariff avoids unpleasant surprises on the final invoice. If the contract is already signed, it is worth asking the customer or supplier whether they are willing to renegotiate that part, instead of waiting for a dispute once the tariff is already being paid.
A contract that does not provide for the tariff leaves the discussion until the invoice appears, and then each party tends to defend its position. It is wise to include clear clauses on who bears changes in tariffs, how they are calculated and what happens if they exceed a certain threshold. The legal and customs advisers can help to draft them precisely. It is also wise to make clear who is obliged to declare the origin of the goods and to provide the customs documentation.
In foreign trade, whoever does not read the clause ends up paying the difference.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
