The new tariff agreement between the US and the EU is fuelling concern among German businesses, with the majority expecting negative effects such as added costs and red tape.
According to a survey by the German Chamber of Industry and Commerce (DIHK). More than half (58%) of the 3,355 companies polled for the survey released on Wednesday said they expect the deal to increase their burden, while only 5% foresee any positive effects. Among firms with direct business ties to the United States, 74% anticipate negative effects.
“This agreement may have been politically necessary, but for many companies in Germany, it’s still a bitter pill,” said DIHK managing director Helena Melnikov. “It brings new burdens instead of relief: higher tariffs, more bureaucracy and reduced competitiveness.”
The EU and US recently reached a compromise in a long-running trade dispute. Under the deal — struck between US President Donald Trump and European Commission President Ursula von der Leyen — most EU goods imported into the US will face a 15% tariff starting August 7.
Many firms were already feeling the impact of existing US trade policy, with 72% reporting noticeable effects. For companies with direct US exposure, that figure rises to 89%, with 80% citing trade policy uncertainty and fear over new tariffs as the biggest concern.
Another 72% said they were worried about the current 10% base tariff and the planned increase to 15%.
More than half of firms with direct US market involvement plan to reduce trade with the US, while 31% have adjusted how they handle customs costs — most passing at least some of the increases on to US customers.
Source: dpa.com
