European exporters developing new strategies to combat new tariffs

European exporters should focus on diversifying, innovating and optimizing their operations to navigate the uncertainty from an emerging tariff war in the global trading system.

A new white paper by Trade Promotion Europe – the umbrella association of Europe’s trade promotion agencies – examines the various strategies adopted by global exporters in the past when confronted with new tariff regimes and adapts them to current circumstances. It draws on a recent analysis by the World Economic Forum.

That means looking at historical precedents, like the moves by Japanese automakers to invest in North American facilities in the 1980s, or the new export opportunities Australian farmers witnessed when China raised tariffs on U.S. and Canadian agricultural producers. And analyzing the options for European exporters operating within the European Union’s regulatory framework.

“The most viable strategies within the EU regulatory environment emphasize diversification, innovation, market adaptation, advocacy through EU channels, and internal supply-chain adjustments,” notes the TPE white paper.

In practice, that means entering new markets less affected by tariffs or relocating production to bypass tariffs. But, also, adopting advanced technologies to enhance supply chain efficiency and reduce costs. One example: some logistics startups have developed software tools to help businesses manage tariff impacts by optimizing shipping routes and inventory management.

Other strategies include investing in innovation to differentiate products or increasing market share in home markets. Further, European companies affected by the tariff wars should also engage with their national and regional trade promotion organizations and support their efforts to advocate for more favorable international trade terms.

“What should Greek businesses really be focusing on right now? With the world changing fast – economically, politically, and technologically – it’s clear that the old playbook doesn’t work anymore. If we want Greek companies to thrive, and not just survive, we need to think smart, act fast, and plan ahead,” says TPE President Vasso Kyrkou.

“Here’s what I believe matters most: First, rewire for resilience. Stop relying on fragile, tariff-sensitive markets and diversify by building stronger supply chains and look toward countries like Canada or Japan for solid, long-term partnerships. Second, go digital and go green. Digital transformation, sustainability, and innovation aren’t buzzwords anymore. They’re the bare minimum for staying in the game. Think ESG, circular economy, smart tech – the future is already here. And third, invest in people. Skills matter more than ever.”