Finding New Markets in Light of Trump’s Tariff Tantrum

Trump’s recent tariffs have sparked widespread uncertainty for European businesses that supply US markets. In the UK, the Food & Drink Industries, car manufacturers and Scotch whisky manufacturers have been the hardest hit by the 10% increase. However, it has become a global concern and discussion.

In light of the tariffs, many businesses are exploring their options, including rerouting large amounts of stock previously dedicated to US markets to alternative supply chains and reducing dependency on the US. The fastest and most effective way of doing this? Trade shows!

Trump’s tariffs follow an ongoing Trade War between the US and China, which involves taxes on a range of goods imported into the US.

This year, a baseline tariff of 10% was introduced on all goods imported into the country, with significantly greater taxes applying to some countries as “payback for unfair trade policies”. While the UK is subject to a baseline fee, the EU has a 20% tariff, and China is currently subject to a whopping 145%, though the amount is steadily increasing! A Tariff even applies to a group of uninhabited islands, populated only by penguins and seals, in a bid to close “ridiculous loopholes”!

Trump’s tariffs are intended to boost the US economy, encouraging Americans to purchase more US goods, increase tax revenue and acquire greater investment and increased employment in the United States. Nonetheless, the tariffs pose significant challenges for businesses globally. Industry experts are still uncertain about how the tariffs will affect the global economy in the long term; however, they agree that SMEs will be hit the hardest as they cope less easily with financial strain and tighter margins. The Federation of Small Businesses states that the tariffs will affect 59% of small UK exporters.

For many, Trump’s tariffs have made it unviable to supply to the US. Some companies are currently in crisis, with large quantities of US-tailored stock; now unprofitable if sold. Though businesses are reviewing strategies such as price increases, quality reductions, or shrinkflation, these options typically devalue the product, damage the brand reputation and harm relationships with the consumer.

Instead, we recommend turning to local and European markets where it is possible to do so. Shifting focus to these markets can drastically offset the loss of US business if the products comply with EU regulations.

European markets are certainly not barrier-free. There are customs controls, VAT and regulatory requirements to be aware of. However, these are generally less complex and expensive than trading currently is with the US, especially for EU participants. For the UK, the EU is already a major trading partner, so many businesses are familiar with regulations, making this transition much simpler.

Participating in trade shows is the fastest way to gain direct access to new supply chains and expand into new markets across Europe.

Trade shows bring businesses face-to-face with budget holders that can swiftly inject products into their supply chains. Moreover, these events serve as the perfect platform to boost brand awareness, strengthen business relationships, and make immediate sales. This is particularly important for businesses with perishable goods that need swift reallocation.

• Book your stand spaces now.

The economic impact of Trump’s tariffs has changed the trade show dynamic and prompted many businesses to investigate exhibitions in new markets. Book your stand spaces before they sell out.

• A small booth is better than no booth!

If recent economic changes have left your company financially strained, a small presence is better than none at all. Speak with a designer to see how you can maximise your impact.

• Cast a wide net.

For the best chance of reallocating large quantities of goods, it’s important to attend a wide range of shows, not just the biggest ones.

• Choose a contractor with extensive experience across Europe.

This is not the year to be taking risks with your exhibition stand. By choosing a contractor who is familiar with installations across Europe, you can save money and ensure brand consistency. This also eliminates risks associated with overseas contractors, like language barriers, miscommunications and even failure to deliver the stand on time. 

One practical solution is modular, reconfigurable exhibition stand design, which drastically cuts exhibiting costs without sacrificing impact.

Quadrant2Design offers a cost-effective solution for businesses needing to expand quickly across Europe.

With the Free-Hire Pro plan, companies invest in just the graphic panels and hire the exhibition stand hardware for free. All aspects of the exhibition, like production, printing, graphic design, project management and even logistics handling, are managed by Quadrant2Design’s in-house team, so there is no subcontracting and no nasty surprises.

Sample Budget: 4 European Shows for £30,000 (4 x 4 m Corner Stand)

• The UK Food and Drink Shows, NEC Birmingham – £11,500

This includes design, printing, pre-build, project management, logistics, and installation

• IFE, ExCeL London, Exact Reinstallation – £3,500

This involves the reuse of the existing stand and includes pre-build and installation.

• Speciality & Fine Food Fair, London, Olympia – £3,500

This involves the reuse of the existing stand and includes pre-build and installation.

• SIAL, Paris, Villepinte – £11,500

This includes the full service by Quadrant2Design’s in-house team across Europe. The stand is hand-delivered, not freight-forwarded.

Alternatively, companies can purchase the entire stand system to self-build for £16,500, gaining total control.

If your products were initially intended for the US, they may need tweaking for the EU. Ensure products meet EU safety, health, and environmental requirements and regulations. Additionally, many products in the EU require the CE marking to indicate that they conform to EU standards. Time is of the essence, so it may be worth investing in a regulatory consultant to help navigate the field.

It’s not just regulations that differ between the US and UK; marketing and packaging are often different as well. The EU requires more ingredient information, country of origin, instructions for use and safety warnings. Because of this, a packaging rebrand may be in order before rerouting stock.

Trump’s tariffs have been a major disruptor to global supply chains and have created many new challenges for UK and European exporters.

By turning attention to local and European markets, particularly through the use of trade shows, businesses can find new supply chains for stock and cover lost ground.

It is crucial to act quickly – ensure your products meet EU standards and book your trade show slots. If you have a project in mind and would like to discuss your options, get in touch with our design consultants! Email us at design@quadrant2design.com or call us at 01202 723 500.

For more information on Quadrant2Design, please take a look at our credentials.