EMEA as a Strategic Anchor Amid Global Trade Volatility

Today, businesses are navigating a landscape marked by economic and geopolitical disruptions, making strategic clarity and operational agility more critical than ever. One of the most pressing external shocks in 2025 is the rapid escalation of U.S.-China trade tensions, with tariffs reaching as high as 145% on certain Chinese imports. These developments are not merely supply chain concerns; they represent a seismic commercial and marketing inflection point.

For brands with substantial manufacturing presence in China, this instability creates significant risk and uncertainty in the U.S. market. But it also reveals a strategic lever: EMEA can serve as both a growth engine and a commercial stabiliser.

Understanding the Global Trade Environment

While China remains the most impacted market as of late April, new tariffs have also been imposed on other major production markets, including Bangladesh and Vietnam. For brands sourcing across Asia, this creates additional exposure, reinforcing the need to diversify regional strategies.

U.S. tariffs on China have reached their highest effective rate since 1909, leading to a “frozen” U.S. market for Chinese exporters and manufacturers based in China. Meanwhile, the EU and the UK continue to maintain relatively open trade relations with China, especially in categories such as fashion, luxury goods, and electronics. For China-reliant brands, this positions the EMEA region as a lower-risk, high-potential area for both near-term commercial focus and long-term market development.

EMEA as a Growth Lever

Growth isn’t just about scale; it’s about clarity and precision in where and how to invest, reducing exposure and unlocking opportunities. A recent study by the Interactive Advertising Bureau (IAB) found that 94% of advertisers are concerned about the effects of tariffs, with 60% expecting budget cuts of 6-10%. This pressure amplifies the need to shift toward high-efficiency markets, such as EMEA, which offer more predictable operating conditions and lower trade barriers, strengthening the region’s position as a commercial and operational anchor. Encouragingly, the European retail sector is showing signs of stabilisation, with consumer sentiment, inflation, and GDP beginning to recover. This, too, provides a more reliable environment for activation, even as ongoing geopolitical tensions and rapid AI-led transformation make adaptability more critical than ever.

Regionalising investment isn’t simply a supply chain mitigation strategy; it enhances commercial resilience. By shifting media budgets and product focus toward EMEA, brands can offset volatility in the U.S. and help maintain global momentum. PMG’s Intelligence Engine, which leverages real-time data and full-funnel planning, enables this shift. It provides real-time insights into macroeconomic changes, product demand, and competitive dynamics, allowing brands to make smarter, faster go-to-market decisions.

Media as the Accelerant

Emerging media opportunities are giving brands new ways to reclaim market share in Europe. The retreat of aggressive cross-border players like Temu and Shein, particularly the sharp drop in their U.S. ad spend following the removal of tariff exemptions, has softened competition across platforms. Sensor Tower reports a spending drop of up to 31% across platforms like Meta, TikTok, and Google, creating a window for other brands to capitalise on lower CPMs and improve media efficiency.

But this isn’t just about ad budgets—it’s about shifting consumer priorities. Recent data from Google and other partners shows that consumers are now actively researching brand origin, cost justification, and geopolitical impact. “Made in America” search queries have doubled, while discretionary spending on categories like luxury, travel, and electronics is being delayed. At the same time, European shoppers are becoming more cautious, discerning, and digitally sophisticated. Sixty-two percent say shopping now requires more effort, and 66% have delayed or avoided a purchase due to having too many choices, according to Google.

In this environment, relevance and clarity matter more than ever. Localised media campaigns, through Europe-first product launches, value-driven storytelling, and strategic retail partnerships, can both build confidence and differentiate you from your competitors. Full-funnel planning and integrated creative execution across platforms is the modern growth engine for pursuing these opportunities. Implementing this model across EMEA ensures relevance, reach, and measurable return over time.

Commercial Advantage Through Proximity & Timing

Gaining a commercial edge requires smart operational strategies. As U.S. tariffs drive price increases, brands face pressure to raise prices domestically. Many global brands, particularly in the luxury sector, maintain a price premium in Europe compared to the U.S., typically ranging from 15% to 25%. If prices in the U.S. rise, that premium could vanish without also increasing prices throughout Europe. This is ultimately a brand decision with margin and market implications.

Brands with a higher proportion of European-based or nearshore production stand to benefit, as they are less exposed to global shipping and tariff volatility, and they can maintain consistent pricing and availability. This operational advantage also supports brand narratives centered on local craftsmanship, quality, and agility—qualities that are essential for building consumer trust. Importantly, trust is now a top currency for European consumers. In fact, 55% say they can’t afford to make the wrong decision, according to Google, and increasingly seek value, not just price. This makes localised branding and emotional resonance a critical component to the equation.

With many U.S.-centric competitors focused inward, brands that prioritise agility and reinvest in EMEA gain a first-mover advantage, capturing market share at a critical moment. Hesitation may come at a steep cost: companies that cut back or delay risk compounded performance losses over time, as evidenced by industry research into the threat of reducing marketing investments during downturns. This approach is particularly relevant in the luxury sector, where proximity, exclusivity, and customer confidence are of great importance.

Final Thoughts

Stay invested in brand equity. In volatile markets, short-term cuts can lead to long-term damage. Brands that maintain or grow investment during disruption consistently outperform competitors. As multiple leaders in the industry have noted, this is a moment for bold, differentiated storytelling, not retreat. Tariffs may erode not just margins, but trust and brand equity. In a volatile market, marketing must do more than sell products; it must signal resilience, value, and meaning.