Unsettled Waters: German Businesses in America Express Mounting Concerns Over US Trade Policies
- *
Escalating Business Climate Concerns: German Businesses in the U.S. Express Significant Deterioration in Attitudes Towards Trade Policies - U.S. Attitude Towards German Businesses Falters Significantly According to Industry Feedback
Nearly half of German businesses operating in the United States are braced for an economic slump, according to the German Chamber of Industry and Commerce (DIHK). This chilling figure represents a staggering increase from just seven percent who forecasted such a development in the fall. Volker Treier, DIHK's chief of foreign trade, has characterized the current state of affairs as a "chaotic zigzag policy" by the US government, causing uncertainty, deterred investments, and even rattling established corporations.
Approximately one-third of surveyed companies anticipate their business to improve, while a quarter dread a downturn. The poll, encompassing around 100 German companies in the US, was conducted between March and mid-April.
"What these companies crave today is dependability," stated Treier. The constant announcements and retractions of tariffs have crippled investment decisions and prompted "fundamental questions" about the future of the US as a business hub. As of the fall of 2024, 37 percent of businesses were planning to expand locally. Presently, only 24 percent hold that ambition, while 29 percent seek to scale back their investments—an unprecedented hike of eleven percentage points.
- US
- German Chamber of Industry and Commerce (DIHK)
- Volker Treier
- Trade Policy
- Tariff Policy
- Economic Conditions
- United States President
- Donald Trump
While the provided search results from DIHK don't provide explicit details on the sentiment of German companies towards the US administration, various sources offer a broader perspective:
- Trade Tensions and Tariffs: The US has been unpredictable in its tariff policy, initially slapping tariffs on EU goods, which were later reduced and then ratcheted up to a threatened 50% tariff. This unpredictability has been a drag on trade relations, yet ongoing negotiations are underway, such as the upcoming meeting between EU Trade Commissioner Maroš Šefčovič and his US counterpart, to ease tensions[1].
- Economic Conditions: In defiance of these trade tensions, the German DAX index has shown tenacity, reaching new apexes amid easing trade tensions. This suggests confidence among investors in German companies, particularly in sectors like defense and banking[1].
- Diplomatic Efforts: Recent encounters between German leaders and US officials, including Chancellor Friedrich Merz and President Trump, have highlighted ongoing diplomatic endeavors aimed at addressing trade issues and other economic concerns[2]. For a more nuanced understanding of DIHK's specific take on these matters, direct statements or reports from the chamber would be essential, as the search results do not offer explicit insights. Generally, chambers of commerce, like DIHK, assess trade policies and economic conditions based on their impact on member businesses, but specific sentiments or recommendations require access to their official publications or statements.
- The unsettled trade policies of the United States, particularly the unpredictable tariff policy, are causing significant concerns and uncertainties among German businesses operating in the country, according to the German Chamber of Industry and Commerce (DIHK).
- The US trade tensions and the subsequent effects on economic conditions have led to a decrease in the number of German businesses planning to expand locally in the United States, as per the findings of a poll conducted by the DIHK, with only 24% holding ambitions for expansion and 29% seeking to scale back their investments as of the spring of 2024.
