The tightening of United States trade policy brings major changes to the international trade environment. New import tariffs would particularly affect Finnish companies whose exports to the USA have grown steadily in recent years This changing situation requires companies to adapt strategically and quickly while developing new operational models.
The Impact of Import Tariffs on Finnish Companies
The United States is one of Finland’s most significant export markets. Finnish companies’ exports cover several key sectors, including technology, machinery, chemical, and forestry industries. The effects of new tariffs would directly impact the competitiveness and market strategies of companies in these sectors.
The immediate effects of import tariffs are particularly visible in pricing and competitiveness. Price increases in the US market can significantly weaken the position of Finnish companies For example, a 25 percent import tariff could make local competitors considerably more attractive options for customers.
Efficient logistics and supply chain management are key in the US market. The additional challenges brought by tariffs can affect delivery reliability and times. It is important for companies to optimize their supply chains to respond to the new situation.
Strategic Adaptation Methods
Companies should examine various strategic options to maintain their competitiveness. Key actions may include market research, strategic analysis, and evaluation of production localization.
To assess the overall impact of tariffs, it may be appropriate to conduct a thorough market analysis on issues such as:
- Evaluating cost implications and pricing strategies
- Anticipating competitors’ actions
- Mapping customers’ ability to pay and quality requirements
Relocating or expanding production to the USA may be a strategically sound decision. Possible implementation methods include:
- Collaboration with local contract manufacturers
- Gradual establishment of own production
- Utilizing partnerships in distribution and logistics
Differences Between States
Different US states offer significant incentives for foreign companies. It is beneficial for companies to investigate:
- Available subsidies and tax relief
- Regulations and certifications related to starting production
- Opportunities to utilize local support mechanisms
Interim Managers Help with Adaptation
For example, relocating production to a new country requires multidisciplinary expertise from strategic planning to operational implementation. Many Finnish SMEs do not have the capacity to manage such an extensive project on their own. Utilizing an interim manager can then offer an effective solution for implementing change.
An experienced interim manager can help adapt to tariffs in many ways. Interim managers bring speed to project initiation through their previous experience and can efficiently guide the process from start to finish. An interim manager with US experience is familiar with the local business environment, competitive situation, and regulations. Resource optimization also improves when a company immediately gains access to an experienced top professional without long-term recruitment.
Support Offered by Cherry and WIL Group
Cherry specializes in providing interim managers and supports companies during critical phases of business transformation. As part of the global WIL Group network, Cherry offers companies both Finnish expertise and local US know-how. This helps companies with strategic planning, possible production relocation, and launching local operations in the United States.
Through WIL Group’s extensive network, Cherry quickly finds local interim managers with strong market knowledge and necessary contacts for managing business in changing circumstances.
Digital solutions and technology utilization can also offer significant competitive advantages in a changing market situation. Finnish companies’ strong technological expertise can serve as a competitive advantage in the US market.
Summary and Recommended Actions
The effects of US import tariffs require active measures and strategic planning from companies. To succeed in the changed market situation, companies should carefully analyze their position, prepare an adaptation plan, and consider effective implementation methods. In all these phases, experienced external help may well be the best solution. Successful implementation of the change process requires:
- Thorough assessment of tariff impacts on your business
- Development of a comprehensive adaptation strategy
- Exploring opportunities for localizing production
- Utilizing the expertise of experienced interim managers to implement change
Cherry and WIL Group offer expert support to companies considering strategic changes in the US market. By combining international experience with local market knowledge, a company can significantly contribute to adapting to tariffs and leveraging new opportunities.
