Shifting US-EU trade climate presents both challenges and opportunities for Dutch Water Sector

Impact of the Build America, Buy America Act (BABA)

One major concern is the Build America, Buy America Act (BABA), signed into law in November 2021. This act mandates that all iron, steel, construction materials, and manufactured products used in federally funded infrastructure projects must be produced in the US. For Dutch companies like NWP member Noardling, a merger of Hubert, Desah, and Landustrie, this requirement poses a significant barrier. Their advanced pump systems and wastewater treatment technologies, primarily manufactured in the Netherlands, do not automatically comply with this regulation.

During the 24 April ‘Navigating in a Changing US Business Climate’ webinar organised by Water Alliance, Johan Langius, CEO of Noardling, shared that his company is exploring the possibility of setting up a US-based production site. However, the volatile nature of tariffs and customs challenges brings uncertainty. "We're constantly seeking ways to minimise the impact on our customers, but it’s difficult given the shifting landscape," said Langius.

Disrupted supply chains and strategic stockpiling

Langius also highlighted operational challenges, including port congestion and logistical delays, further complicating transatlantic trade. Similar concerns were voiced by NWP member LG Sonic, a Dutch specialist in ultrasonic algae control. Gregg Eifert, Managing Director of its US operations, stated that the company is assessing the feasibility of local assembly to offset potential risks.

Demand for Dutch expertise remains high

Despite these hurdles, the demand for water solutions in the US remains robust. Saskia Pardaans, Senior Adviser Infrastructure and Water Management at the Dutch Embassy in Washington, stressed the ongoing relevance of Dutch expertise, especially as the US faces increasing climate-related challenges, rising sea levels, urban flooding, drought, and infrastructure degradation.

According to a recent report by the Netherlands Business Support Office (NBSO) Texas, the US market presents ample opportunities in areas such as flood protection, sustainable dyke reinforcement, water reuse, and adaptive urban infrastructure. Programmes like Partners for International Business (PIB), currently working in Florida and Texas, hope to capitalise on this demand with Dutch innovations in flexible flood defences.

Netherlands Water Partnership: “The market remains attractive”

Rick Elmendorp, NWP’s Director and Chair, confirms that Dutch companies remain optimistic about the US market, despite current geopolitical and economic uncertainties.

“We’ve spoken to several of our members that do business in the US and asked how the shifting tariffs and geopolitical context are affecting them,” says Elmendorp. “Many companies had already anticipated these changes before the elections, while others are accelerating their pre-existing strategies.”

Dutch water sector companies are taking proactive steps, such as:

• shipping long-term stockpiles to the US;
• moving part of their production or assembly across the Atlantic;
• establishing legal entities in the US or Canada to mitigate risk.

“Crucially, our members aren’t withdrawing from the American market. They still see strong potential,” Elmendorp adds. “They also point out that import tariffs apply to competitors from other countries as well, some of whom face even higher costs. In that light, the new trade barriers may actually level the playing field or even give Dutch companies a competitive edge in other global markets.”

Elmendorp notes that the United States consistently ranks among the top five export markets in NWP’s annual WEX survey, underlining the country’s continued relevance for Dutch water businesses. “Companies are either already prepared or are now seeking practical solutions. The American market still holds considerable promise.”