Tariffs on European foodservice equipment: a turning point for transatlantic trade
Taking the pulse of the German and UK National Associations of Producers (NAP) members of EFCEM, and with input from the Federation's president Martin Ubl, Sam Noble explores the short-and long-term impact of US tariffs on the European equipment sector 
On 7 August 2025 US trade tariffs on European goods officially came into force. For the European foodservice equipment sector, this new layer of costs challenges competitiveness and disrupts long-standing trading relationships. But could it also prove to be a catalyst for innovation and strategic realignment?
As the umbrella federation for Europe's catering equipment industry, EFCEM recognizes that the implications of these tariffs will reverberate well beyond export statistics. They threaten the health of European manufacturers, the supply chains that bind them to global partners, and the customers in foodservice operations who depend on access to reliable, high-quality equipment.
Partnerships under stress
“Higher tariffs on exports to the US are, of course, not welcome and will have short-term effects on the commercial kitchen sector,” says Martin Ubl, president of EFCEM, noting that the tariffs are a symptom of imbalance in the transatlantic relationship. "The deal that has been negotiated is not necessarily based on partnership. A little more self-confidence would certainly have been beneficial."
Although price adjustments and squeezed margins are unavoidable in the near term, he believes the situation could improve: "As much it is still uncertain and further negotiations are likely, I think it is important to take great care when drafting supply contracts at the moment, for example by including price escalation clauses and other precautions.
This lack of certainty, however, hampers long-term planning and creates risk in investment cycles that are already stretched by rising energy costs and sustainability obligations.
The German view: rising costs, shifting markets
German manufacturers, many of who have historically enjoyed a strong export presence in the US, are already experiencing the pinch HKI, the German national foodservice equipment association, polled opinion from its members and reports that the newly imposed US tariffs on European goods are “already leading to higher costs for German manufacturers, with some passing these on through increased end-customer prices.” This has in turn triggered short-term price adjustments both in the US market and internally within companies, while the longer-term consequences remain uncertain. For now, the key challenge lies in maintaining competitiveness despite rising costs,” according to HKI's members.
Looking further ahead, HKI members have warned that the tariffs could alter the geographic balance of trade. “In the longer term, US tariffs could weaken the role of the American market for German equipment manufacturers,” members reported to HKI. "And while potential production shifts depend on cost structures and tariff policies, it remains unlikely that German companies will establish US production sites solely because of tariffs.
HKI believes the quality of European equipment will win through: "We expect demand for modern, high-quality food equipment in the US to persist, despite higher prices and pressure on margins. At the same time, trade relations may reorient, with German companies increasingly focusing on Europe and Asia, leading to more competition in those markets."
The UK perspective: relatively insulated, strategically alert
In the UK, the picture looks different. John Cunningham, CEO of the Foodservice Equipment Association (FEA), notes that the UK has secured better terms than many feared. "When [US President] Donald Trump first announced US tariffs earlier this year it initially created much turmoil in the global markets. The heated, emotional exchanges from many political leaders, followed by tit-for-tat announcements and escalations didn't help the situation," he says.
“Thankfully we are now in a much better place; the rhetoric has calmed, negotiations have taken place and the headlines are that the UK has negotiated a 10% tariff on goods entering the US, whilst the EU has negotiated a 15% tariff.”
Like Ubl, though, Cunningham points to the possibility for further surprises. “Much of the detail behind these negotiated tariffs and their terms remains either unclear, open to interpretation or has yet to be agreed, so I don't think we are yet at the end of the matter.”
Cunningham is pragmatic about the immediate impact: "Whilst the noise and fury around the US tariffs has been loud, the UK commercial kitchen equipment sector has quietly been getting on with business. Relatively speaking, the UK foodservice equipment sector doesn't export a great deal to the US, so we're not hugely affected by these tariffs.
"Our main export market is the EU. Despite all the attention coming from the US, it's most important for us to maintain a strong and stable relationship with our partners in Europe – and that their economies remain strong and vibrant."
He nevertheless points out that global manufacturers are already rethinking their strategies due to the tariff environment. "Some manufacturers that were on the brink of bringing manufacturing to the US are now confidently pursuing this. Others that manufacture somewhere like China have resigned to a massive reduction in their US sales – and focusing on other markets to achieve their objectives."
Opportunity amid pressure?
Ubl believes that while tariffs mean higher prices, greater uncertainty, and tighter margins, they also emphasize the importance of innovation and resilience. “It will be necessary to invest even more heavily in innovation and efficiency in order to further increase competitiveness,” he says.
“Commercial kitchen technology from Europe is the most innovative and will therefore continue to be demanded worldwide, including in the USA and especially in the premium segment,” adds Ubl.
“We must continue to build on this lead.”
Charting a new path
There's no denying the disruptive impact of the 7 August tariffs. They drive up costs and threaten market share, as well as unsettling everyone with a reminder of just how fragile the geopolitical environment can be. But they should also remind us to prioritize European stability and build on our competitive advantage – as manufacturers of the world's most innovative foodservice equipment.