Amid trade tensions and unpredictable tariffs, companies worldwide are shifting their focus away from the United States and exploring new markets.
For decades, the U.S. has been a key market for global businesses. However, recent tariff policies have introduced uncertainties that are forcing companies to rethink their strategies. From Canada to Germany, firms are now looking to Asia, Europe, and other regions for growth opportunities.
Canadian Firms Seek New Partnerships
Canada, historically reliant on the U.S. for 75% of its exports, was among the first to feel the impact of new tariffs. In March, the U.S. imposed a 25% tariff on steel and aluminum imports from Canada, followed by another 25% on cars and parts that didn’t comply with updated trade agreements.
PNP Pharmaceuticals, a contract manufacturer based in British Columbia, is one such company adapting to this new landscape. “We are now venturing into other markets as we see that we need to pivot,” said Alan Urmeneta, Partnership Sourcing Manager at PNP Pharmaceuticals. The company is scouting for partners in Asia to diversify its clientele.
Similarly, LabelPak Printing Inc., a distributor of packaging products, is considering reducing its U.S. sales, which currently make up 15% of its business. Founder Ken Gallie expressed concerns over potential future tariffs: “If [the U.S. administration] decides to throw a 50% tariff on Canadian goods, it’s going to really put us out of the market. We are going to put more emphasis on the Canadian business.”
European Companies Redirect Focus
In Germany, a number of retailers and consumer brands are also shifting their attention away from the U.S. market. Zalando, a leading online fashion retailer, announced plans to intensify its push into the European market. Co-CEO David Schneider noted a significant shift in interest from brands and retail partners toward Europe due to the complexities of trading with the U.S.
Fashion giant Hugo Boss has adjusted its global strategy by diverting China-made products away from the U.S. to serve other markets. CEO Daniel Grieder mentioned a cautious stance toward American consumer behavior, with the company’s U.S. sales dropping by 1% in the first quarter compared to last year.
Adidas, the renowned sportswear company, echoed similar sentiments. CEO Bjørn Gulden acknowledged that while the company saw strong growth in the first quarter of 2025, uncertainty around future U.S. tariffs is influencing strategic decisions. Adidas is preparing moderate price increases in the U.S. to mitigate potential cost pressures.
A Shift in Global Trade Dynamics
These developments highlight a significant shift in global trade dynamics. Companies are increasingly seeking stability and are cautious about relying heavily on the U.S. market. Mike Chisholm, a consultant for Canadian exporters, emphasized the need for businesses to find more predictable markets. “Owners want stability, banks want stability, private equity funds want stability. They are just going to be very, very careful,” he said.
As businesses adapt to this new reality, the global trade landscape is poised for change. For young entrepreneurs and professionals in the Global South, these shifts present both challenges and opportunities in an interconnected world.
