Trade barriers are on the rise hindering German companies, commerce chamber says
"The growing trade barriers and protectionist signals from Washington are causing great concern for our companies," said Volker Treier, head of foreign trade at DIHK.
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Donald Trump's newly-announced 25% tariff on imported vehicles to the U.S. will be bad for European and U.S. economies, with German auto associations calling for urgent negotiations to ward off a spiralling trade war.
Of the companies surveyed, 70% expect negative impacts of U.S. trade policy on their business, while last year, the U.S. was considered a beacon of hope.
The survey, which took place before Wednesday's announcement by Trump, took place among nearly 2,600 internationally active companies based in Germany.
The uncertainty caused by U.S. trade policy radiates to all world regions. Despite slight upward trends, business prospects for the current year remain negative in almost all world regions.
In the U.S., higher tariffs already pose a burden for half of the German companies active there, while last year it was 24%, according to the survey.
In the past twelve months, more than every second internationally active company reported additional trade barriers abroad, the survey among nearly 2,600 internationally active companies based in Germany showed.
Local certification requirements and increased security regulations are particularly complicating planning and driving up costs, DIHK said.
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