German Firms Hit Hard by U.S. Tariffs, Trade Barriers Threaten Exports

March 27, 2025
German Firms Hit Hard by U.S. Tariffs, Trade Barriers Threaten Exports
  • Local certification requirements and heightened security regulations are making it increasingly difficult for companies to plan and are raising operational costs.

  • A recent survey by the German chamber of commerce DIHK reveals that rising trade barriers are complicating foreign business for German companies, particularly in the United States.

  • Over the past year, more than half of the surveyed companies reported encountering additional trade barriers in international markets, signaling a concerning trend towards protectionism.

  • Volker Treier, head of foreign trade at DIHK, voiced his concerns about the negative impact of protectionist signals from Washington on German businesses.

  • Only 15% of the surveyed companies expect an improvement in their foreign business this year, while 23% anticipate a further decline.

  • For 2025, DIHK forecasts a decline in exports, with Treier suggesting that the previously estimated 1% drop may now be overly optimistic due to new tariffs.

  • The recently announced 25% tariff on imported vehicles by Donald Trump is expected to adversely affect both European and U.S. economies, leading to calls for urgent negotiations to prevent escalating trade conflicts.

  • Currently, 70% of surveyed German firms anticipate negative impacts from U.S. trade policy, a stark contrast to the previous year when the U.S. was seen as a positive market.

  • Half of the German companies operating in the U.S. are now facing challenges due to higher tariffs, a significant increase from 24% the previous year.

  • In the U.S., 50% of companies are already feeling the pressure from new tariffs, up from 25% the previous year, indicating growing burdens.

  • The survey, which included nearly 2,600 internationally active German companies, was conducted prior to Trump's tariff announcement, which DIHK fears could worsen the business outlook for German exporters.

  • Key challenges for these companies include local certification requirements, increased security regulations, and mandatory local production quotas, all of which drive up costs and complicate planning.

Summary based on 2 sources


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