The European Union (EU) has historically been a major player in global trade, but is now facing complex new challenges. Deep transformations in international markets, such as increasing protectionism in various countries, the impact of climate change and geopolitical shifts, require the EU to adapt its strategy. One of the most important challenges is the increasing trade tensions between large countries such as the US and China. High tariff policies and trade restrictions are affecting companies in Europe, which rely heavily on exports. Additionally, the shift towards digitalization and technology-based trade is also influencing the way the EU operates. Innovations in e-commerce create new opportunities, but also urge the EU to protect personal data and cybersecurity. Strict data protection policies, such as GDPR, demonstrate the EU’s commitment to privacy; however, this can be a barrier for businesses wishing to operate in the European market. Climate change is a central issue in EU trade diplomacy. Europe is trying to be a leader in sustainability by promoting green trade. Initiatives such as the European Green Deal aim to reduce emissions and promote environmentally friendly technologies, but their implementation can increase costs for companies. The mandate to reduce the carbon footprint could affect the competitiveness of European products in the global market. Another challenge faced is uncertain international politics. Tensions between major countries, as well as conflicts in strategic areas, can affect the delivery of goods and the stability of supply chains. Unpredictable supply chains during the COVID-19 pandemic exposed vulnerabilities and the need to diversify sources. Maintaining good relations with trading partners while maintaining strategic interests is becoming increasingly difficult. Furthermore, Brexit creates new uncertainties. Despite efforts by the EU and UK to work out a trade deal, the UK’s decision to leave the EU creates complex logistical and trade challenges. This uncertainty requires companies on both sides to adjust their operational and supply management strategies. Meanwhile, the EU is also focusing on free trade agreements with other countries to offset existing challenges. Agreements such as the Comprehensive Economic and Trade Agreement (CETA) with Canada show that the EU remains committed to widening the doors to trade. This is done to further increase the competitiveness of European products in the global market even though they are faced with many obstacles. The development of a sustainable industrial policy is a priority for the EU. Efforts to strengthen the industrial body in the long term are very important in facing global competition and ecological challenges. In this case, investment in research and innovation will be key to achieving sustainability and efficiency. Taking all these aspects into account, the EU must adapt quickly to remain a leading actor on the global stage. Successfully meeting these challenges will depend on how well the EU can devise a strategy that balances market liberalization, environmental protection and political interests. Creating policies that are responsive to the changing trade environment and new global challenges is essential for the sustainability and growth of the European Union economy.