EU-US trade deal hits European water companies
The President of the European Commission Ursula von der Leyen and President Donald Trump of the Unites States agreed on import tariffs on EU goods at 15% on July 27. The United States will apply the full 15% rate to the vast majority of European exports, including water-related goods and equipment. The EU will not impose extra tariffs on American products. The new tariffs will take effect on August 1, 2025.
Von der Leyen outlined the trade deal in a Press Release on the website of the European Commission. The agreement still requires ratification. Several high-tech sectors such as aircraft parts, semiconductors, critical raw materials, and some agricultural goods are exempt from tariffs. For water companies in Europe, the new tariffs will weaken their competitive position in the US.
Buy America Act
The Dutch company Noardling, a specialist in sustainable water technology, told the Dutch trade publication Waterforum in May that market access issues in the United States predate Trump’s new tariffs. Since 2021, the Build America, Buy America Act (BABA) has posed significant barriers for foreign suppliers. The law, introduced under President Biden, mandates that iron, steel, construction materials, and manufactured goods used in federally funded infrastructure projects must be made in the United States. For Noardling, whose wastewater treatment and pumping systems are primarily produced in the Netherlands, BABA has made it difficult to qualify for American contracts. Exemptions are available but require time-consuming procedures and are far from guaranteed. The new import tariffs now add an additional competitive hurdle for European firms.
Consequences international water market
The US water tech giant Xylem, active globally with brands such as Flygt, Lowara, and Godwin, has now largely recovered from the market shock. The company offers a broad portfolio, from water treatment and pipeline monitoring to data analytics and irrigation systems, and is expected to benefit from the new import tariffs.
Although European products will become more expensive in the US, experts expect that the American market will remain interesting for the European water sector. Most companies will adapt and not withdraw from the US because it is such an important market.
WEFTEC
The international WEFTEC trade fair, taking place in Chicago in October 2025, is seen as a crucial moment for European firms to present themselves. Major European Water Companies such as Veolia, Suez, Grundfos, Sigmadaf, and KSB will attend the trade fair and concentrate on doing business as usual.
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