When an anti-dumping duty makes a product from China more expensive, buyers often look at suppliers in other countries. But if the EU introduces a safeguard, that may not be enough.
The EU is considering further trade measures following its recent understanding with China on hybrid vehicles. On 23 October, Trade Commissioner Maroš Šefčovič said plastics were closest to a possible safeguard investigation. Chemicals and machinery have also been raised as sectors of concern.
No new plastics duty has been announced, and the Commission has not specified which products an investigation might cover. Still, it is worth understanding how safeguards work.
How safeguards differ from anti-dumping duties
Anti-dumping duties generally target imports from specific countries and can vary between manufacturers.
A safeguard is broader. It applies to the product concerned, regardless of where it comes from, subject to certain exceptions. That means a buyer moving an order from China to Türkiye or Vietnam could still face the same measure.
Some developing countries may be excluded based on their share of EU imports. The actual scope and exemptions depend on the measure adopted.
When the goods arrive can matter too
Safeguards can also use quotas. Under the EU’s former steel safeguard, imports within the applicable quota could enter without the additional safeguard duty. Once the quota was exhausted, an extra 25% applied.
That meant two shipments of the same product could face different costs depending on when they cleared customs and whether quota remained available.
What buyers can do
For now, the sensible step is to know the exact customs codes and origins of the products you buy, including any relevant materials or components. If an investigation is opened, those details will help establish whether an order or an alternative supplier could be affected.
It is also worth considering how a potential duty would be handled in the contract, particularly for orders with longer production and shipping times.
At Berg, we consider these risks when comparing suppliers and planning orders. A lower factory price only tells part of the story if the landed cost changes by the time the goods arrive.
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