AHK Frankenstein: The Omeprazole of German Businesses in the US
American-based customs regulations pose challenges for German companies operating in the United States.
Yo, US President Donald Trump's trade strategies are gnawing at the nerves of German businesses rooted in the States, even those with oldest ties. Gone is the hopeful haze, replaced by a dark cloud of pessimism. They're looking at the future with jangled nerves and digging their heels in their wallets.
In a nutshell, a DIHK analysis of their bubbly survey (that's the AHK World Business Outlook) tells the tale. Just 14% of the polled companies predict brighter days ahead in the next 12 months, a dramatic drop from last fall's 38%. Conversely, 44% anticipate a downward spiral, a six-fold increase from the shy 7% last time. DIHK's mouth was wide open when it declared, "The party's over, my friend! What was once hopeful anticipation is now disillusionment."
The downward spiral has left its mark on business expectations, too. A mere third is opulent enough to strut a positive business development stance, while a quarter darkens the mood with predictions of a nose-dive.
Now, this gloom isn't a standalone event. It's a reflection of the Trump tariff tornado, spitting fire in the automotive industry, particularly. Since April 3, 2025, Trump raised those import duties on German goods to a whopping 25%. That's almost ten times the original 2.5% duty on European cars and over double the 25% on pick-ups and light commercial vehicles.
The aftershock? A stiff economy on the Old Continent. Trump's trade thrashings are seen as major roadblocks, nipping Germany's economy right in the bud[4]. It's a Terrible Tambourine Dance for German businesses in the US, but the US market's still the bomb. It's a honey pot for companies like BMW, Porsche, and Mercedes-Benz, no matter how sticky the situation gets[3]. They're holding their breath, urging a dance floor where trade relations stay in beat with their survival.
[3] European automakers lose out in Trump's tariff threat escalation, Reuters, 2018[4] German economy in recession over trade war fears, The Independent, 2019
In the context of Trump's trade strategies causing distress among German businesses in the US, the general news is abuzz with talk of economic repercussions. This is not just a local issue for these businesses, as finance, politics, and even the broader business sector are closely watching this unfold. The increasing tariffs on German goods in the US market, particularly in the automotive industry, are raising concerns about the future of these businesses and the health of the European and US economies.
