Core Viewpoint - The article highlights the significant impact of potential high tariffs imposed by the U.S. government on Croatian food exporters, particularly Hermes International, which is struggling to cope with the economic consequences of these trade policies [1][2]. Company Impact - Hermes International, founded 20 years ago, primarily produces fig jam and has seen its annual sales in the U.S. market reach approximately $10 million, exporting around 150 containers each year [1]. - The company faces a potential annual tariff cost of $1 million if a 10% tariff is implemented, which could be devastating for a small to medium-sized enterprise like Hermes [1]. - The uncertainty surrounding U.S. tariff policies has forced Hermes to reduce shipments to the U.S., leading to significant economic losses and layoffs [2]. Market Strategy - In response to the challenges posed by high tariffs, Hermes International is shifting its strategy to reduce reliance on the U.S. market and is exploring opportunities in other markets, particularly China, which is seen as having substantial market potential [3]. - The company emphasizes the importance of diversifying markets to mitigate risks associated with over-dependence on a single market [3].