Tariffs and regulatory compliance have become the main barriers to international trade for EU firms, overtaking logistics disruption and input shortages.
This is the main finding of a new joint report by the European Commission and the European Investment Bank (EIB) announced on Thursday.
The report is based on a survey of 1,165 companies and found that around 20% cited regulatory compliance as a major obstacle to trade, while 18% pointed to changes in customs duties and tariffs. More than half of firms surveyed expect higher tariffs to persist in the long term.
Almost two-thirds of EU firms said they consider themselves prepared to manage geopolitical risks.
Preparedness varied by size — about 73% of large firms said they were prepared, compared with fewer than 50% of small and medium-sized enterprises.
Firms reported they are increasingly diversifying suppliers and markets in response to tariffs and geopolitical challenges.
The two EU bodies also said companies described a shift from short-term crisis responses towards longer-term resilience strategies.
Single Market stability and proposed measures
The EU’s Single Market — which allows goods, services, people and capital to move more freely across member states — continues to provide stability for firms that trade exclusively within the bloc.
The report called for targeted financial instruments, stronger early-warning mechanisms, greater regulatory clarity, progress on EU trade agreements and deeper Single Market integration.
It also cited continued investment in innovation, digitalisation, skills and supply-chain resilience.
The Commission said it is working on removing what it calls the “Terrible Ten” — the 10 most harmful barriers within the Single Market.
It has also put forward 12 “omnibus” proposals that it said would result in net savings of €17 billion a year for businesses, and noted it is working with member states and the European Parliament to address regulatory divergences, including those caused by “gold-plating”, where countries add extra requirements when implementing EU rules.
