German Firms Grapple with Trump's Tariff Impact
Nearly 30% of German firms have delayed investments in the U.S., and 15% have canceled projects due to uncertainty from President Trump's tariffs. The tariff policies have caused significant disruptions, notably impacting Germany's export sectors, leading companies to reconsider investment strategies globally.
- Country:
- Germany
Nearly a third of German companies planning to invest in the United States have put their plans on hold, and an additional 15% have canceled altogether, according to an Ifo Institute survey released on Thursday. The hesitance reflects uncertainties stemming from President Donald Trump's tariff policies.
The survey found that domestic investment decisions are also being affected, with 21% of German firms postponing projects in Germany, and 8% outrightly canceling them. The Trump administration's tariffs have profoundly impacted German companies, particularly those in export-driven sectors like mechanical engineering and metal production.
Ifo trade expert Andreas Baur described the tariffs as a 'profound trade policy shock,' compelling companies to reconsider global markets and investment allocations. Firms with U.S. operations are also feeling the squeeze, with over 80% noticing significant adverse effects. Despite this, companies see potential in expanding markets within the European Union and India.
(With inputs from agencies.)
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