Navigating the U.S. Market Post-Presidential Election: Essential Strategies for European Companies

As the political landscape in the United States continues to shift, European companies looking to enter or expand in this market must adapt their strategies accordingly. The recent re-election of Donald Trump brings a renewed focus on “America First” policies that prioritize domestic industries. While this can create complexities for foreign businesses, it also opens new doors for those equipped with the right local partnerships and market insights. Now, it is time to focus on opportunity and your game plan moving forward.

The State of the U.S.-EU Trade Relationship

Transatlantic trade between the European Union and the United States remains one of the world’s most robust economic partnerships. Despite recent shifts in policy, the U.S. is still the largest destination for EU goods, with trade between the two accounting for over 30% of global trade. In 2023, U.S.-EU trade in goods reached about $548 billion in EU exports to the U.S. and $376 billion in imports from the U.S., yielding a $172 billion surplus for the EU. This underscores robust demand and strong transatlantic ties, and highlights the potential pushback for the US in wanting to close the trade deficient. What this means is a more surgical approach will be needed for selling into the U.S. market. Yes, there will be great opportunities for innovative companies, but European firms will face a more challenging business landscape. Whether entering for the first time or expanding operations, companies who will succeed are those that will seek the right local partnerships to navigate regulatory changes, cultural differences, and an evolving market dynamic.

Why Local Partnerships Are Essential

Navigating new regulations and trade policies that are coming will be challenging, especially for European companies without a local presence. Large consulting or law firms may seem like a solution, but they come with higher costs and can lack the nuanced, hands-on approach needed for successful market entry. I can site many EU companies have invested heavily in big firms, then fail in establishing a foothold, even in less turbulent times. This is especially concerning for small to medium-sized enterprises (SMEs), that need customized, strategic support and on-the-ground expertise to avoid expensive missteps.

Successful entry into the U.S. market requires much more than legal advice; it involves navigating market changes, regulation in all of North America (US/Canada and Mexico have a free trade agreement), understanding cultural factors, and leveraging industry relationships. An on-the-ground partner with real-time insight and an established local network is your best bet in coordinating essential services that include, legal, accounting, and training your team for successes through a unified, strategic approach. This necessary comprehensive perspective is often missing in large firms that are marketing to you. You should know, large consulting firms often assign a junior associate with limited local experiences and networks.

For effective, budget-conscious entry into the U.S., choose a partner with both experience and a strong local network. Vet a partner that aligns your entry strategy and truly understands your needs and can customize a path to success. Below are a few points to keep in mind.

Market Insights: Companies with a local presence gain a faster and more accurate understanding of consumer behavior. For instance, nearly 80% of American consumers in a recent study expressed a preference for brands that show an understanding of their cultural context. This insight can only be fully realized with help from partners who are immersed in the local market dynamics.

Operational Efficiency: A local partner can facilitate supply-chain logistics and help align European products with American standards. From labeling requirements to safety certifications, every detail matters.

Adaptable Sales and Marketing Strategies: Localized strategies are pivotal in capturing market share. Partners can train your already existing sales teams and tailor offerings and communications more effectively to meet expectations.

Building the RIGHT Relationships

European businesses entering the U.S. need precision partners who are willing to customize solutions quickly, efficiently and in a cost effective way.

Conclusion

All parties agree, entering the U.S. market will require more strategy, agility and robust partnerships on the ground in North America. Working with experts who grasp local market nuances and have a strong local network will be essential to navigating shifting market conditions with a new President and administration. Building relationships with trusted partners, who are efficient, and can work directly with you to overcome obstacles is the foundation for long-term success in the U.S.

For tailored guidance and to discuss strategic partnerships for your U.S. market entry, and North American strategy, please reach out to me directly. My team and I at Waller Global are ready to assist with our deep knowledge and a proven track record in helping businesses succeed.