Many Bulgarian Companies Freeze Hiring and Investment Amid US Customs Uncertainty

The newly introduced US customs policy is creating both confusion and opportunity for businesses in Bulgaria’s Trakia Economic Zone, which hosts around 200 companies producing for European and global markets.

Among the businesses expressing concern is a German manufacturer near Plovdiv, which produces automotive and white goods components for Bulgarian firms exporting to Europe. Though not directly exporting to the US, the company is affected by the unpredictability of the American policy changes. "There is a complete information fog—tariffs are imposed one day, adjusted the next, and increased again later," said general manager Krasen Krastev. He emphasized that this instability is not unique to Bulgaria, but affects global operations due to the generalized US trade approach.

Amid the lack of clarity, many companies have paused recruitment and are declining long-term contracts. Investment plans have also been suspended. According to Krastev, companies are bracing for the worst-case scenario. "Firms will avoid expanding production and may even lay off staff to stay resilient during uncertain times."

However, some businesses interpret the situation as a potential advantage for Bulgaria. The suspension or redirection of tariffs may result in more foreign companies relocating production to the country. Eng. Plamen Panchev, founder of the Trakia Economic Zone, confirmed ongoing talks with four Asian firms, noting that such interest has been long-awaited. “The emerging opportunities must be seized immediately,” Panchev said.

The zone is not only attracting attention from Asia. Negotiations are also underway with American investors, and interest from Chinese companies in Bulgaria is reportedly growing.