Struggles abroad: German firms hit by economic uncertainty amid US trade tensions
International Strife: The Mood of German Companies Overseas Dampens Relations - International Business Climate: German Companies' Overseas Outlook Dimmed by Trade Disputes
In a stark turn of events, German companies working overseas are finding themselves in a precarious position due to unfavorable conditions and growing uncertainties. According to a report by the Foreign Trade Chamber (AHK), companies are encountering deteriorating frameworks and increased uncertainty almost across all world regions, with no signs of a recovery in German foreign trade.
Volker Treier, a key player in the scene, underlined the significant influence of US trade policy and the subsequent reactions, which have led to investors losing faith. This, in turn, has caused investments to be delayed or even cancelled, and traditional trade ties to be reconsidered. A worrying 60% of German companies abroad fear repercussions from US trade policy, a figure that skyrockets to 85% in the US itself.
Treier expresses grave concerns about the protectionist and unpredictable US trade policy, which is generating considerable uncertainty and hampering economic activities.
Beyond tariffs and retaliatory tariffs, these companies also grapple with political interference in supply chains and distortions of competition through subsidies and industrial policies. Treier calls on German and European Union politics to take immediate action, strengthening domestic locations and forging new, reliable trade partnerships worldwide.
The survey was conducted based on reports from about 4,600 German companies in approximately 90 countries, according to the DIHK. The data collection took place between March 17 and April 14.
- Volker Treier
- Trade Dispute
- Uncertainty
- US Trade Policy
- North America
- Spring
- Berlin
- German Economy
- Global Economy
Enrichment Data:
Impact of US Trade Policy:- Negative Impact: The majority of German companies expect negative effects (60%) on their local business due to the new US trade policy, while 17% anticipate substantial repercussions.- Shift in Expectations: After Donald Trump announced extensive tariffs on April 2, 2025, the proportion of companies anticipating negative effects rose from 56% to 69%.
Regional Variations:- North America: Unlike other regions, North America demonstrates unique trends, such as only a quarter of companies planning to hire new employees, compared to another quarter intending to cut jobs due to economic insecurity.- Employment Plans in the US: In the US, German firms are reassessing employment strategies, with 28% planning to hire more and 16% wishing to reduce their workforce.
Global Implications:- Export Impacts: The uncertain economic climate not only impedes investment but also decreases production for export to the USA, affecting employment in countries like Mexico and Canada.- Global Economy: The US trade policy is contributing to a significant cut in the global economy, exacerbating challenges posed by the coronavirus pandemic and the energy price crisis.
- Volker Treier, a prominent figure, has voiced concerns about the negative impact of the US trade policy on German companies operating overseas, as 60% of these firms anticipate local business decline.
- Treier cites political interference in supply chains, subsidies, and industrial policies, along with tariffs and retaliatory tariffs, as challenges that these firms face due to the US trade policy.
- Since President Trump announced extensive tariffs in April 2025, the number of German companies expecting negative effects increased from 56% to 69%.
- In North America, specifically the US, 28% of German firms are planning to hire more workers, while another 16% are considering reducing their workforce, as a result of the US trade policy's uncertainties.
- The US trade policy is not only affecting investment and production for export, particularly in countries like Mexico and Canada, but also threatening the global economy, as it exacerbates challenges posed by the coronavirus pandemic and energy price crisis.
