Over 60% of German industrial companies said that US President Donald Trump's tariffs will have a negative impact on them, and around 30% of companies that initially wanted to invest in the US have postponed their plans. This was announced by the Munich-based Ifo Institute for Economic Research.
In June, Ifo conducted a survey among 1,500 German industrial companies on the impact of the new US tariffs on them. The results also revealed the companies' expectations regarding Washington's future trade policy, as well as their investment plans. Thus, more than 60% of the companies surveyed noted that the US tariffs will have a negative impact on them. Almost as many fear increased competitive pressure from Chinese companies as a result of US trade policy.
Around a third of companies expect a change in the emphasis in global trade relations with the US. The Trump administration's tariff policy, as researchers have found, is also affecting the investment plans of German companies. In particular, about 30% of companies have postponed their plans to invest in the States. About 15% have abandoned them altogether.
Trump previously announced the introduction of 30% tariffs on all European exports from August 1, in addition to the existing 10% tariffs on steel, aluminum and cars from the EU. In response, European Commission President Ursula von der Leyen announced that these tariffs would undermine transatlantic supply chains and called for an attempt to reach an agreement by August 1, no matter what.