More than 60 percent of the companies complain about the effects of US tariffs. Export -strong industries such as mechanical engineering (87 percent) and metal generation (68 percent) are particularly affected. Even companies with US locations suffer from the tariffs: more than 80 percent report noticeable disadvantages. “Trump’s tariffs are a profound trade policy shock-they force companies to re-evaluate global markets and realign investments,” said IFO trade expert Andreas Baur.
Many companies already react specifically to the challenges. Almost 30 percent of companies with investment plans in the United States have postponed projects, and 15 percent have deleted them completely. But investments in Germany are also stalling because of customs policy: 21 percent postpone projects, eight percent report on the deletion of investments. “Especially companies that are negatively affected by the Trump-Zöllen decide to postpone or delete investments in Germany,” reports the Ifo Institute.
With the expected loss of meaning of the US market, around 40 percent of growing sales opportunities in the EU internal market and on the Indian market see each other. Hardly any company expects a shrinking trade. Opinions diverge on the Chinese market.
According to the IFO Institute, 17 percent of the companies expect an increasing importance of the Chinese market for their company. In addition, 59 percent assume that Chinese providers are increasingly pushing European markets due to the US tariffs. This should also increase competitive pressure to German industry.
“In order for German companies to continue to survive in the future, politics must ensure reliable framework conditions and make access to new markets easier,” said the head of the IFO Center for Foreign Affairs, Lisandra Flach. For example, the EU should ratify the Mercosur Agreement with Latin American states quickly, drive further trade agreements and at the same time reduce barriers in the internal market.
