Tariff Wars and Production Shifts: When Substantial Transformation Fails the Economic Justification Test

As the United States impose protectionist measures, the European Union (EU) is expected to respond with strict countermeasures designed to shield its industries and reinforce trade regulations. Drawing from past precedents – such as the Harley-Davidson case, where the EU targeted companies attempting to circumvent tariffs through supply chain restructuring – Brussels is likely to scrutinize and penalize business strategies aimed at mitigating the financial impact of these new trade barriers.