Tariffs explained

Complete Overview - New U.S. Tariffs: What They Mean for Norway

Key Terms Explained

Understanding the difference between tariffs, customs duties, and MVA (VAT) is important for businesses and individuals dealing with international trade:

• Tariff (Toll / Import Duty) – A tax placed on imported goods, paid by the importer when the goods enter the country. Example: The U.S. has introduced a 15% tariff on Norwegian salmon.
• Customs Duty (Tollavgift / Importavgift) – Another term for tariffs; it refers to the tax paid on imported goods at customs.
• MVA (Merverdiavgift) / VAT – A sales tax applied to most goods and services, and imports, in Norway (VAT also exists in most other countries). Unlike tariffs, this is a consumer tax paid by buyers inside Norway.

Example: If a Norwegian company exports machinery to the U.S., the American buyer pays a tariff at import. If the same machinery is sold within Norway, the buyer pays MVA instead.

Tariffs 2025 (April 3rd)

Starting April 2025, President Trump imposed reciprocal tariffs targeting countries with significant trade imbalances or perceived unfair practices. These tariffs aim to "level the playing field" by matching or exceeding the tariffs imposed by other nations on U.S. goods.

• Baseline Tariff: A 10% tariff on all imports, effective from April 5, 2025.
• Reciprocal Tariffs: Additional tariffs based on trade relationships. Countries like Norway face a 16% reciprocal tariff, while the EU sees a 20% tariff.
• Key Tariff Rates:
  • European Union: 20%
  • China: 34%
  • Norway: 16%
  • Canada and Mexico: Exempted

These tariffs will impact industries such as seafood, automotive parts, and renewable energy products. The goal is to encourage more balanced trade, but businesses should expect higher costs and potential market losses in the U.S.

Additional Information:

• Automobile Tariffs: A 25% tariff on foreign-made cars, except for Canada and Mexico.
• Global Reaction: Many countries, including the EU and China, are preparing countermeasures to retaliate against these tariffs.

How Industries Are Affected

These new U.S. tariffs may not immediately affect businesses operating in Norway unless the Norwegian government decides to retaliate or apply its own tariffs on U.S. goods. However, Norwegian companies that export to the U.S. will face higher costs due to the increased tariffs. Here's a quick overview of how industries could be impacted:

Industry	Previous Tariff	New Tariff	Impact
Seafood (e.g., Salmon)	0%	15%	Higher costs for U.S. buyers, potential drop in exports.
Automotive Parts	Varied	16%	Increased prices, possible market loss in the U.S.
Technology Equipment	Varied	16%	More expensive for U.S. buyers, affecting demand.
Textiles	Varied	16%	Competitive disadvantage due to higher costs.
Renewable Energy Products	Varied	16%	Could slow adoption in the U.S. due to price hikes.

Tariffs imposed by the U.S. government on different countries, including Norway, depend on the product code (HS-code). The duty can be searched and found on the U.S. HTS website: HTS USITC

Similarly, Norway has its own database known as the Tolltariff where you can search and find the different duties on different products.

How ODIN Customs Can Help

We assist businesses in navigating these changes by providing:

• Customs Consultation: Understand how the new tariffs impact your business.
• Tariff Mitigation Strategies: Find ways to reduce the financial impact, such as adjusting supply chains.
• Regulatory Updates: Stay informed about changes in international trade policies.

Need Help?

If you have any questions about how these tariffs affect your business, contact us today.