As a member of the Global Trade and Innovation Policy Alliance (GTIPA), the Center for Research and Policy Making (CRPM) contributed to the newly published report The Aftermath of the 2025 U.S. Tariffs: How Countries Are Adapting to an Uncertain Global Trade System. Bringing together contributions from 30 GTIPA member organizations across 25 countries, the report examines how economies and policy landscapes have evolved one year after the introduction of the so-called “Liberation Day” tariffs.
The report is based on a common analytical framework developed by the Information Technology and Innovation Foundation (ITIF), which explored several key questions: How have economic policy priorities changed since the trade conflict began? Has the push for trade diversification intensified? What are the main policy debates surrounding responses to the evolving trade environment? And how have perceptions of the United States and China changed among policymakers?
A central finding emerging from the country cases is that the most significant consequence of the tariffs has not been a widespread tariff war, but rather a broader process of strategic adjustment. While most countries avoided direct retaliation and the immediate economic impact proved less severe than initially anticipated, the tariffs have reshaped policy priorities in lasting ways. Across the globe, governments have accelerated efforts to diversify trade partnerships, strengthen economic resilience, develop industrial policy, enhance digital sovereignty, and reassess their economic relationships with both the United States and China.
For N. Macedonia, the effects of the tariffs have been largely indirect. Trade with the United States represents only a small share of the country’s economy, accounting for approximately one percent of GDP. However, N. Macedonia’s strong integration into European manufacturing value chains-particularly in the automotive sector—means that developments in U.S.-EU trade relations can have significant spillover effects on domestic industry and exports.
Rather than responding defensively, N. Macedonia has pursued a strategy of proactive adaptation. The trade shock has reinforced efforts to strengthen economic cooperation with the United States, advance energy reforms, accelerate digital transformation, and maintain alignment with the European Union’s long-term economic and regulatory agenda.
One notable development has been the conclusion of a preliminary Framework for a Reciprocal, Fair, and Balanced Trade Agreement with the United States. While U.S. tariffs on Macedonian products were reduced from 33 percent to 15 percent, further negotiations remain important to secure improved market access for Macedonian exporters, expand the list of products eligible for preferential treatment, and address remaining non-tariff barriers.
At the same time, safeguarding access to European markets remains essential. Given that the vast majority of Macedonian exports are destined for the European Union, maintaining competitiveness within European supply chains will depend on continued alignment with EU standards, particularly those related to the green and digital transitions. As European companies increasingly seek to shorten and regionalize supply chains, N. Macedonia has an opportunity to strengthen its position as a reliable production and investment destination.
The report also highlights the importance of export diversification. Expanding access to new markets can help reduce vulnerability to external shocks and create additional opportunities for domestic firms. Achieving this objective will require coordinated efforts by government institutions, business associations, and exporters to identify new trade opportunities and strengthen international competitiveness.
Energy security has emerged as another strategic priority. Efforts to diversify energy sources, including commitments related to liquefied natural gas (LNG) infrastructure and regional energy connectivity, can contribute to greater economic resilience while enhancing the country’s attractiveness for foreign investment.
N. Macedonia’s experience illustrates a broader lesson from the evolving global trade landscape. In an increasingly fragmented international economy, resilience is no longer determined solely by tariff levels. It depends on a country’s ability to diversify markets, secure reliable energy supplies, strengthen digital and industrial capabilities, and build strategic partnerships while remaining anchored to its long-term development objectives.
CRPM will continue to contribute evidence-based analysis to these debates, supporting informed policymaking on trade, competitiveness, innovation, and economic resilience in N. Macedonia and the wider region.
