QMS Helps U.S. Manufacturers Adapt to Impending EU Tariffs
U.S. manufacturers face new uncertainty from the EU’s retaliatory tariffs on a wide range of U.S. products from bourbon and motorcycles to polyethylene (PE), a foundational plastic for making automotive components, construction materials, packaging, and other goods. Poised to start in mid-April, these tariffs carry a 10-50% penalty on targeted products. As they currently stand, the U.S.-European tariffs will affect $9.5 trillion of transatlantic commerce annually. With ongoing negotiations extending the uncertainty, manufacturers are under increasing pressure to adapt swiftly.
The Ripple Effect on Global Supply Chains
As noted in a previous story on the Trump Administration’s tariffs on Mexico, Canada, and China, manufacturing supply chains are globally interwoven. Raw materials imported into the U.S. are exported as finished products, often back to the very countries from which they originated. International affiliate sales further complicate matters. For instance, U.S. foreign affiliate sales to Europe are four times greater than direct exports, and European affiliate sales to the U.S. are three times higher than European exports. As of March 22, an American car maker faces 25% tariffs for importing European steel and aluminum and a 10% export tariff to the EU.
Plastics Manufacturers Feel the Heat
“The imposition of tariffs, particularly on industrial goods such as plastics, will disrupt supply chains, raise costs for businesses, and negatively impact consumers on both sides of the Atlantic,” said Virginia Janssens, Managing Director at Plastics Europe, a European trade association.
Plastics producing states like South Carolina and West Virginia will feel the heat from the retaliatory tariffs. South Carolina exported $223 million in ethylene copolymers, a form of PE, to the EU in 2024. West Virginian companies exported $146 million in plastic resins to the EU in 2024. These tariffs will inevitably drive up manufacturing costs, which will likely be passed on to consumers in both the U.S. and EU in the form of higher prices.
Leveraging AI-Driven QMS for Strategic Advantage
In this environment of uncertainty, a modern, AI-powered Quality Management System (QMS) offers a strategic advantage. An intelligent QMS platform equips companies with the tools to optimize processes, ensure regulatory compliance (ISO 9001, 14001, 45001, 27001, etc.), and maintain production precision.
Heather Preu, CEO of Intellect, highlights the crucial role of QMS in delivering operational certainty:
“Manufacturers must balance speed with precision while adhering to strict product documentation standards. When operations move too quickly and sacrifice accuracy, the result is wasted time, resources, and increased risk, particularly in the form of costly recalls that can cause significant financial and reputational damage.”
Adaptive Supply Chain Management and Planning
An AI-driven QMS empowers quality leaders to adapt to changing conditions. By optimizing global supply chains manufacturers can reduce the impact of tariffs and maintain operational stability.
How an Intelligent QMS Platform Benefits Quality Leaders:
✅ Enhanced Supply Chain Visibility: Intellect provides insights for informed sourcing and logistics decisions that factor in tariff costs.
✅ Improved Compliance Management: Automated tracking enables compliance teams to reduce the likelihood of financial or reputational penalties.
✅ Risk Mitigation: Analytics can help identify potential disruptions and cost fluctuations across sourcing, production, and final mile logistics.
✅ Quick Decision Support: AI-powered insights offer root cause analysis and recommendations on the shop floor, in transit, or at your desk.
✅ Optimized Efficiency: Intellect automates repetitive tasks such as audits and supplier management —freeing up valuable time for strategic initiatives.
Learn more about how Intellect can help manufacturers stay agile despite tariff uncertainties.
