European business ties with the Berber economy aim for increased strength
The Bergisch region, a significant part of Germany's industrial landscape, is grappling with the repercussions of increased tariffs and customs complexities resulting from the US-EU trade deal.
The surveyed companies, predominantly small and medium-sized enterprises, have expressed concerns about the 15% tariff on German exports to the US, a reduction from the initially proposed 25%. This tariff, according to the companies, raises the costs for Bergisch manufacturers exporting to the US, eroding their price competitiveness [1][3].
The new customs rules and bureaucratic hurdles have also caused planning challenges, slowing down shipments and necessitating costly adjustments in supply chains [2]. This situation implies increased prices for US customers, risking loss of market share or pressure on profit margins, particularly for SMEs with less ability to absorb added costs [2].
Industry voices warn that this could lead to restructured supply chains, diminished growth prospects, and potential job losses within Germany’s export sectors, affecting regions like Bergisch that have a strong export orientation [1].
Despite the trade agreement averting a harsher trade war, ongoing political uncertainty and the potential for tariff fluctuations continue to weaken confidence and complicate strategic business planning [1].
In response, some companies plan to absorb some or all of the tariff costs at the expense of their profits, while others intend to pass on the additional costs to their customers [1]. Companies also fear that Chinese producers may redirect their originally intended exports for the USA to the European Union, increasing competitive pressure.
The US market is expected to lose importance for the Bergisch economy, with the focus shifting more towards the EU internal market again. The economy also hopes for the Asian growth markets, such as India. However, strong fluctuations in the euro-dollar exchange rate remain a burden for the global trade of the export-oriented Bergisch economy.
Dr. Groß, a prominent voice in the industry, demands that the EU works on further free trade agreements to counter increasing protectionism. No company in the survey indicates a desire to make higher investments in the USA.
In sum, the increased tariffs and customs complexities stemming from the new US-EU trade deal weaken the competitiveness of U.S.-market–oriented German companies in the Bergisch region by raising export costs and increasing operational difficulties, with negative implications for growth, pricing, and supply chain stability. Firms often respond by innovating or seeking cost savings where possible but face undeniable challenges due to these trade barriers [1][2][3].
Finance and business leaders in the Bergisch region are worried about the increased tariffs on German exports to the US, as it could potentially lead to Strained financial situations for small and medium-sized enterprises, especially those with less ability to absorb added costs.
The uncertainty and potential fluctuations in tariffs under the new US-EU trade deal, along with the complexities of new customs rules and supply chain adjustments, are causing challenges in the finance and business sectors, threatening the growth and profitability of companies in the region.
