American companies in Croatia growing – how will Trump’s tariffs impact them?

(Photo credit: Miki Bratanić)

American companies in Croatia have seen steady growth, with many expanding operations and hiring new workers.

According to a survey conducted by the American Chamber of Commerce (AmCham), 64% of companies performed better in 2024 compared to 2023, and nearly half increased their workforce.

The trend is expected to continue in 2025, with most of AmCham’s 360 member companies planning to hire more employees over the next three years.

Despite positive results, businesses face several challenges, including labour shortages, rising wages, and inflation.

AmCham Executive Director Andrea Doko Jelušić told HRT that while 62% of companies have raised wages in line with or above inflation, 38% have struggled to keep up.

However, over 50% of businesses plan further wage increases in 2025 to remain competitive and attract top talent.

When comparing Croatia to other Central and Eastern European countries, 53% of surveyed companies consider business conditions similar, while over 30% believe Croatia offers a more favourable environment.

A majority (61%) rate the country’s business climate as good or very good, noting improvements in the past five years. However, concerns remain over labour quality and availability, high labour costs, and legal procedures.

Trump’s Tariffs and Economic Concerns

US President Donald Trump has announced a 25% tariff on EU products, sparking concerns among business leaders. Large American companies with European factories may not feel the impact, as the tariffs target products made outside the US.

However, AmCham warns that trade barriers could slow economic growth, particularly for small and medium-sized American firms struggling to remain competitive in Europe.

Another potential issue is a drop in demand for US products, though AmCham does not expect a boycott. “The EU and US markets are closely connected. American tourists continue to visit Croatia, and Croatian consumers still buy US products,” said Doko Jelušić.

Future of US-EU Economic Relations

Over the past decade, trade between the US and the EU has more than doubled.

The key question now is how Trump’s tariff policy will shape future economic ties. Croatian businesses will closely monitor developments as American companies in the country remain optimistic but cautious about what lies ahead.