Spotlight on the USA – A strategic market for EU SMEs

The United States is the world’s largest economy and consumer market, making it a top destination for EU businesses seeking growth.¹ With a projected population of 341+ million in 2025 and a GDP of $30.3 trillion (26% of global GDP), the U.S. offers unmatched scale and spending power.^{2, 3} Nearly 40% of the population falls within the prime spending age of 25–54.

 Transatlantic trade is already strong:

• €1.6–1.7 trillion in goods and services traded annually⁴
• 16 million jobs supported on both sides of the Atlantic⁴

For European SMEs, U.S. expansion is a natural next step, and one backed by a decade of steady export growth.

Several U.S. industries are expanding rapidly, offering opportunities for EU firms. Already, the EU exports more than €532 billion worth of goods and services to the United States annually. Here are just a few of the areas seeing significant growth right now.⁴

The right U.S. entry strategy depends on your business model, industry, and current stage of growth.

For example, an e-commerce apparel brand from France may start with U.S. marketplace sales, while a high-tech manufacturer from Italy might benefit from a local joint venture. A Polish medtech company already exporting across the EU will face different compliance and logistics needs than a SaaS startup in Belgium entering its first foreign market.

In the digital services space, concerns about data privacy, IP protection, and customer service localization are very different from regulated industries like biotech, medical devices, or food production.

When planning your entry, segment your approach:

• For early-stage SMEs: Start with online sales, pilot testing, and light-touch distribution.
• For established EU exporters: Focus on regulatory preparedness, local partnerships, and sales localization.

EU SMEs eyeing the U.S. market should plan strategically. Here are the key steps you will need to take for success.

Evaluate your product-market fit, capital needs and team. You need to analyze financing requirements, staffing, logistics and management capacity before considering entry. Conduct detailed market research to pinpoint target segments and states.

Decide on the mode of entry. Options include:

• Direct exports (B2C or B2B e-commerce or distributors)
• Partnerships or joint ventures
• Licensing
• Franchising
• Establishing a local subsidiary

For example, many SMEs begin by selling through online marketplaces or appointing U.S. distributors, then later form a U.S. entity. Consider subsidiaries, partnerships or subcontracting arrangements as a first step when expanding to the United States.

Use EU and U.S.-based support. Networking with local industry clusters and attending U.S. trade fairs and B2B events in your sector can also yield contacts and pipelines.

Enterprise Europe Network offers market information and matchmaking that can help ease the transition.⁷

Consult with legal counsel to fully understand U.S.-specific product regulations. Depending on your industry, there is a wide range of country-specific rules, and you need to ensure your products and solutions are in compliance. Keep in mind that some sectors require U.S. regulatory approvals.

Part of your due diligence will also include researching patents and trademarks in the United States.

You will also want to set up the appropriate corporate and tax structure in both countries, planning for any corporate taxes, state sales taxes and employee issues.

Here is a checklist to help you prepare for your legal review:

 

• Are your product certifications recognized in the U.S.?
• Do your contracts and service terms meet U.S. legal standards?
• Are your trademarks or patents filed in the U.S.?
• Are you subject to state-specific employment, sales tax, or consumer protection laws?
• Do you need a U.S.-based legal representative or registered agent?

For any digital services, consider cross-border data regulations and platform-specific compliance.

Often overlooked are currency risk and tariff risks. Things can change quickly, impacting your margins and projections. Proposed tariff changes, such as those recently announced by US President Donald Trump, could affect import duties on European goods in key sectors. While such policies are still under debate, SMEs should factor in the possibility of medium-term regulatory and cost changes. You will want to build in financial buffers and have a contingency plan in place if things change.

Build in extra lead time for logistics and regulatory approvals.

While logistics and compliance are critical, many European SMEs underestimate the cultural gap. The U.S. market rewards bold positioning, performance-oriented messaging, and personalized service.

In B2C and B2B contexts alike, U.S. buyers tend to favor:

• Direct communication and confident, benefit-led language.
• Quick responsiveness, often expecting same-day replies.
• Assertive value propositions, with strong calls to action.

Your website, product pages, customer service scripts, and sales materials should all reflect U.S. tone-of-voice norms. Avoid overly modest or passive language that may work well in Europe but fails to connect with U.S. buyers.

For marketing, remember: U.S. customers expect localized terminology (“shipping” instead of “delivery”), clear pricing in U.S. dollars, and real-time support, particularly for tech or subscription-based services.

Networking also plays a key role in U.S. business culture. Active participation in events, trade shows, webinars, and LinkedIn engagement can help accelerate trust and deal flow.

Expanding to the U.S. requires financial resources, and several EU and U.S. programs can help mitigate risk.

EU-based support includes:

• Horizon Europe: R&D funding for innovation-based SMEs.⁸
• COSME: Funding and market access support for SMEs.⁹
• Enterprise Europe Network (EEN): Export readiness, matchmaking, and advisory services.¹⁰

On the U.S. side, some states offer grants or incentives to attract foreign SMEs. Texas, North Carolina, and Ohio, for example, provide tax breaks, hiring incentives, and site selection support to international companies willing to set up operations locally. Exploring these funding pathways early can increase the viability of your U.S. expansion strategy.

Most EU exporters use air freight or express courier for fast delivery and ocean freight for bulk. Typical transit times from Europe to the United States are roughly three to 10 days by air freight, although it is possible to get even next-day delivery. Sea freight can take between two and six weeks.

U.S. Customs and Border Protection rules must be strictly followed. Ensuring complete, accurate documentation is crucial, as mistakes can trigger delays, cargo holds and fines. Many exporters use U.S. customs brokers to handle paperwork and filings, which can greatly reduce clearance problems.

Some products also require inspections or certifications by U.S. agencies, which may involve additional paperwork or preshipment testing.

Determine duty rates and Incoterms®. Whether you choose Delivered at Place (DAP), Delivery Duty Paid (DDP), or another method will determine who pays the costs and absorbs the risk.

Prepare to pay U.S. import taxes promptly, as holding shipments until duties are paid is common, and make sure you account for compliance costs in your margins when considering U.S. markets.

The United States is geographically large, so using domestic warehouses or fulfillment centers can speed delivery and reduce per-unit costs.

Many EU SMEs partner with third-party logistics (3PL) providers, or set up inventory in major hubs that are geographically dispersed to reduce delivery costs based on customer locations and product distribution.

U.S. buyers are accustomed to seeing prices in U.S. dollars, inclusive of shipping fees where possible. Unexpected shipping costs or confusing currency conversions at checkout often lead to cart abandonment or lost sales. Successful EU exporters localize pricing, offer flat-rate or free shipping, and clarify delivery timelines up front.

Speed is also a major differentiator. Thanks to widespread infrastructure and competition from domestic brands, U.S. customers now expect fast shipping. Depending on your products and sector, this can mean two- to three-day shipping. In many metro areas, same-day or next-day delivery is the norm. If you're fulfilling orders from Europe, this expectation can be a challenge. That's why many EU SMEs choose to stock inventory at U.S.-based fulfillment centers or partner with domestic 3PL providers to ensure competitive delivery speeds.

U.S. consumers also value clear return policies and post-sale support. Providing easy-to-follow instructions, prepaid labels and responsive customer service can make the difference between a one-time buyer and a loyal customer.

Speed, clarity and service have become core elements of competing effectively in the American market.

For many EU SMEs, entering the U.S. market can feel overwhelming. But it doesn’t have to happen all at once.

A phased approach allows businesses to test, learn and scale with greater control and less risk. Here’s a simple framework that you may want to consider, tailoring it to your specific sector and timeline.

Focus on market research, internal alignment and groundwork.

Action plan:

• Conduct a readiness assessment to identify your strengths and gaps.
• Define your target customer segment and shortlist high-potential U.S. regions.
• Connect with EU and U.S. trade support organizations.
• Begin legal and compliance planning, including trademarks, product standards and entity research.

Start building a presence in the United States through low-risk channels.

Action plan:

• Launch through e-commerce platforms or appoint a U.S. distributor.
• Set up logistics infrastructure, such as a fulfillment center or 3PL partner.
• Localize your website and customer support for U.S. buyers.
• Test marketing campaigns and monitor buyer behavior to refine your approach.

Once you’ve gained traction, you can begin to scale operations more confidently.

Action plan:

• Establish a U.S. subsidiary or hire local staff, if needed.
• Expand into additional states or customer segments.
• Reinforce partnerships and build longer-term supply chain resilience.

The U.S. market’s size and dynamism offer EU SMEs a chance to scale up. By carefully studying market data, entry strategies and planning logistics from port to customer, European small businesses can tap into American demand.

With total EU-U.S. commerce in goods and services continuing to grow, grabbing even a small slice of this market can significantly grow your business.

Disclaimer: The information provided on this page does not constitute legal, tax, finance, accounting, or trade advice, but is designed to provide general information relating to business and commerce. The FedEx Small Business Hub content, information, and services are not a substitute for obtaining the advice of a competent professional, for example a licensed attorney, law firm, accountant, or financial adviser.