BERLIN, Aug. 27 — More than half of German companies with operations in the United States plan to scale back trade with the country due to a new EU-U.S. tariff deal, a survey by the Association of German Chambers of Industry and Commerce (DIHK) showed on Wednesday.
The poll of about 3,500 German firms found that 55 percent see the deal as an excessive burden on the European economy, while 54 percent of those with U.S. operations expect to reduce trade with the United States.
The agreement, finalized in late July between European Commission President Ursula von der Leyen and U.S. President Donald Trump, introduced a 15 percent tariff on most EU exports to the U.S. Washington had already imposed escalating duties on European steel, aluminum, automobiles and auto parts.
DIHK Chief Executive Helena Melnikov said these measures have already inflicted significant damage on German exporters. Volker Treier, head of foreign trade at DIHK, warned that U.S. protectionist trade policy could backfire.
“Instead of promoting stable economic relations and an attractive investment environment, the United States increasingly represents tariff chaos and an uncertain business climate,” he said.
Treier urged Washington to implement planned tariff reductions on automobiles and metals swiftly. “The strategy of forcing reindustrialization through protectionist measures such as tariffs is not working from the perspective of the German economy,” he added.
The survey indicated that the tariff deal is deterring investment. More than a quarter of companies with U.S. operations said they had postponed or scrapped investment plans.
Treier said Trump’s tariff policy has heightened uncertainty among German businesses, regardless of whether they operate in the United States.
“These tariffs harm the U.S. economy more than they help. U.S. customers will primarily bear the cost of the import duties. The majority of companies with U.S. operations will pass on the additional tariff costs entirely or at least partially to their customers,” he said. (Xinhua)
