The report by the Central Planning Bureau (CPB), titled “Effect of U.S. Import Tariffs on the Dutch and European Economy,” has drawn significant attention in politics. On January 17, 2025, the Ministers for Foreign Trade and Development Cooperation and Economic Affairs responded in writing to parliamentary questions from members Kamminga and Martens-America (both VVD). The response delves deeper into the potential impact of U.S. import tariffs on the Dutch economy and the policies that the Dutch and European governments can implement to mitigate negative effects.
The Parliamentary Questions and the CPB Report
The CPB report investigates the consequences of U.S. import tariffs, including effects on Dutch exports and employment. The report concludes that U.S. tariffs are likely to affect the U.S. economy the most, but Dutch businesses could also be impacted, particularly in manufacturing. Sectors such as machinery, electronics, and vehicles may experience a decline in production and exports to the U.S., although the overall impact on the Netherlands remains relatively limited.
The ministers emphasize that Dutch businesses are flexible and can shift their trade flows to other markets. Moreover, the EU has various trade tools, such as anti-dumping measures, which can be used to protect the interests of European companies.
Agility of the Dutch Economy
The Dutch economy is dynamic and adaptable, meaning businesses can quickly adjust to changing conditions. This is evident in how Dutch companies often find new markets when access to others, such as the U.S., is made more difficult by higher tariffs.
The ministers point out that no concrete measures are currently needed to compensate for potential job losses. The strong labor market in the Netherlands, combined with the resilience of the business sector, ensures that the risks of unemployment due to import tariffs remain small.
Policy Measures and EU Cooperation
Active work is being done within the EU to strengthen industries that may be hardest hit. This includes implementing recommendations from the Draghi Report and improving businesses’ access to financing. Additionally, efforts are being made to enhance the Capital Markets Union and the availability of financing for small and medium-sized enterprises (SMEs).
The government remains in close contact with the business community and works with the EU to ensure that Dutch businesses are not unfairly disadvantaged by measures from third countries, such as the U.S.
International Trade Flows and the Netherlands as a Logistics Hub
The shift in trade flows, especially as a result of U.S. tariffs, may affect Dutch ports and the logistics sector. However, the effects are not expected to be dramatic. The Netherlands remains an important player in global trade, and the ports will continue to adapt to changing trade flows.
Conclusion
The situation regarding U.S. import tariffs has an impact on the European and Dutch economies, but there are plenty of policy measures and trade tools available to mitigate the effects. The government remains vigilant and will continue to monitor developments in order to intervene where necessary.
