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Expert Shares Insights into the Shifting Trade Landscape and How to Remain Competitive in 2025

“Expert Shares Insights into the Shifting Trade Landscape and How to Remain Competitive in 2025”

3 February, 2025
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In an interconnected global economy, geopolitical shifts and trade disputes have risen. From trade wars between major economies to the reshaping of supply chains, the trading landscape is ever-changing.

Considering recent global events, such as the Russian invasion in Ukraine and the pandemic, world trade will grow at a slower pace, contributing to the complexity of the global trade environment. 

The impact of this means conducting business, particularly internationally, may become much more difficult. That’s where having a strategic mix of adaptability, foresight, and innovation can support future trade.

Shalini Khemka CBE, CEO and founder of E2E, an entrepreneurial community, shares her expert insights into how businesses can stay agile and take advantage of new opportunities in 2025.

The aftermath of Brexit and its repercussions on trade

The aftermath of Brexit involves a continually evolving relationship between the UK and the EU.

In fact, Brexit caused a fall of 13% to UK trade in goods in 2022, and a study revealed that the value of goods imports decreased by £1.5bn in July 2024, and the value of goods exports fell by £3.4bn in July 2024. This has caused a fall in imports from both EU and non-EU countries, with exports also decreasing.

“When considering how the trading landscape is changing, we must acknowledge Brexit and its effects,” shares Miss Khemka. “If businesses are dependent on EU markets, they may face ongoing compliance challenges, tariff adjustments, and potential trade disputes.

“However, if any barriers are eased or any UK-EU trade agreements emerge, then there will certainly be opportunities for growth.

“Understanding the regulations around Brexit and being up to date with its developments is crucial to any business that trades with EU markets.”

Consider emerging markets when you’re looking to expand trade

“Looking into emerging markets is vital in this unsteady trade landscape,” continues Miss Khemka. “If your business does depend on EU markets, or on any market, then looking elsewhere is a necessary step to secure more security for your business.”

There are certain aspects to consider, such as analysing the market opportunities and researching local legislation, but this provides a route to escape being dependent on EU markets.

Miss Khemka adds: “Whilst businesses would still need to navigate new market-specific risks in an emerging market, such as political instability, ensuring your business is expanding whilst trade and geopolitics is already unstable ensures you will not be reliant on one particular market and its regulations.”

When analysing what would be the right fit for your business, Miss Khemka suggests looking into markets with growth potential based on demographic trends and economic policies, and also providing tailored offerings that would meet the unique needs of emerging markets.

It can also be beneficial to collaborate with local businesses to gain market insights and establish credibility: “Entering a new market without the appropriate research along with an adjusted strategy to ensure your product offering is matched to a new pool of customers is of course setting yourself up for failure.

“Spending time on refining your offering and building a level of trust and credibility are vital steps to ensure your business does not lose its competitive edge.”

Diversify supply chains to avoid the impacts of tariffs

“Just like being too dependent on one market can be risky in such uncertain times, so can being too reliant on one supply chain,” shares Miss Khemka.

With issues surrounding geopolitics and intense weather changes, disruptions to supply chains have occurred, causing many delays.

“A problem that can be caused by trade disputes and regional conflicts is often a disruption to supply chains, which is why an over-reliance on a single supplier can expose businesses to significant risks.

“That’s why expanding your supplier networks is an absolute must to stay agile within an ever-changing trade landscape.”

In order to achieve this, it is recommended to localise operations by establishing regional hubs closer to key markets to minimise the impact of tariffs, as nearshore and domestic suppliers can pave the way for greater margins.

Many businesses are also partnering with suppliers and logistics providers, tackling the issues head-on and addressing the problems with delays and increasing costs. 

The consequences of the global financial market volatility

With the current international economic instability, the ongoing currency fluctuations, and the regulatory competition, the UK’s status as a global financial hub could be seriously affected.

“The financial market is globally undergoing a state of volatility, and the UK could suffer greatly from this,” shares Miss Khemka.

“The finance sector in particular could take a hit, and businesses in this market will need to adapt to the shifting capital flows that come with such instability. 

“Along with this, we must be aware of the higher borrowing costs and inflation-related challenges that might emerge.”

This is where leveraging technology must be a crucial part of your business strategy to guide your stability during trade shifts.

Khemka adds: “It is vital we have access to real-time data platforms to stay regularly informed about market information. It may also be necessary to implement AI tools that can predict market trends to spot any signs of volatility that may hit the financial sector.”

Find out more about E2E and its entrepreneurial platform.