Trade tariffs hit Europe: initial reactions from EFCEM President Martin Ubl
On 7 August 2025, new US tariffs on European goods came into effect. This development carries major implications for the commercial kitchen equipment manufacturing sector. In this Q&A, EFCEM President Martin Ubl shares his first thoughts on how the tariffs are already being felt, what the sector should expect in the short and long term, and where opportunities may also lie.
What are the short-term implications the tariffs are having on the sector?
Higher tariffs on exports to the US are, of course, not welcome and will also have short-term effects on the commercial kitchen sector. I also think that the deal that has been negotiated is not necessarily based on partnership. A little more self-confidence would certainly have been beneficial.
What initial reactions are to be expected?
Selective price adjustments and initially lower margins for US export-oriented manufacturers are to be expected. However, as much it is still uncertain and further negotiations are likely, planning reliability is limited and current investment decisions are being made with greater caution. 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.
What about longer-term consequences? How will it affect trade?
In the long term, direct exports from Europe to the US are expected to become more expensive, which will increase prices for equipment and spare parts and make logistics more complicated. The catering industry and business in the US will also feel the effects of this through higher purchasing- and operating costs. In return, US companies supplying Europe, will face increasing challenges in meeting European CO2 and sustainability requirements.
Conversely, does this actually present any opportunities?
Alongside the disadvantages for European manufacturers, this also offers opportunities, as it will be necessary to invest even more heavily in innovation and efficiency in order to further increase competitiveness. Commercial kitchen technology from Europe is the most innovative technology and will therefore continue to be demanded worldwide, including in the USA and especially in the premium segment. We must continue to build on this lead. In addition, perhaps this is also a good time for both sides to consider meaningful cooperation.
While these are only the initial reactions, the full impact of the US tariffs will unfold in the months ahead. In September, EFCEM will publish a more in-depth article gathering perspectives from across Europe, offering deeper analysis and sector-wide commentary. Stay tuned for further insights.