Without innovation and M&A, Italian SMEs risk falling behind under Trump’s new rules

Donald Trump’s recent economic policies could trigger significant global repercussions and are already creating immediate uncertainty in markets and among businesses.
In addition to the United States’ withdrawal from the OECD agreement on a global minimum tax for multinationals, the Trump administration has announced new custom duties on imports, particularly targeting European and Chinese products.
For Italy, a study by Confartigianato predicts a potential decline in exports to the U.S. of up to €11 billion, representing a 16.8% drop from the current €66.4 billion.
In this scenario, Italian SMEs face unprecedented challenges.
The combination of aggressive competition, rapid technological innovation, and shifting consumer expectations is now compounded by trade barriers stemming from new tariffs.
Standing still could mean losing critical market share. Therefore, adopting proactive strategies such as innovation and mergers and acquisitions (M&A) becomes essential to ensure long-term survival and growth.
Innovation: a necessity for SMEs
Traditionally, innovation has been viewed as an internal process, requiring significant investments of time and resources. However, for many SMEs, this approach can be limiting, especially during periods of economic uncertainty and with constrained financial resources.
M&A operations offer a strategic alternative. By acquiring innovative companies or forming strategic partnerships, SMEs can rapidly access new technologies, expertise, and markets, reducing development timelines and mitigating the risks associated with internal innovation.
M&A: the catalyst for change
Mergers and acquisitions not only accelerate innovation but also create synergies that enhance competitiveness. By combining resources, know-how, and technologies, companies can develop innovative solutions and tackle market challenges more effectively.
In the tech sector, for instance, many large corporations have acquired startups to integrate cutting-edge solutions, ensuring their ability to respond swiftly to market changes. For SMEs, this strategy can represent not just a pathway for growth but also a means to remain relevant in an ever-evolving world.
Joining forces to compete
In an economic landscape characterized by uncertainty and rapid change, business aggregation emerges as a winning strategy. By collaborating or acquiring other companies, SMEs can strengthen their market position, gain access to new resources and expertise, and more effectively address the challenges posed by new tariffs and global dynamics.
The future of SMEs lies in action today
Trump’s recent moves highlight the importance of a proactive approach for Italian SMEs. Innovation and M&A are no longer optional but essential tools for ensuring survival and growth in an increasingly complex global market.
Businesses that seize these opportunities will be better equipped to face future challenges, turning difficulties into competitive advantages and securing a prosperous and sustainable future.