Proposing an Expansion of EU-US Customs Officers within the EU Borders
The latest U.S.-EU trade agreement has brought both relief and concerns for small and medium-sized enterprises (SMEs) in Germany and across Europe. While the agreement temporarily halts further escalation in the transatlantic trade conflict, it introduces a 15% tariff on EU goods, including automotive products, which is a major worry for German SMEs.
According to the German Association for Small and Medium-sized Businesses (DMB), this tariff could impose significant costs and burdens on SMEs and related industries during a critical transformation period. Although the tariff is lower than the initially proposed 27.5%, it is still expected to cost the German automotive sector billions annually, potentially straining SMEs dependent on that market and adding uncertainty about the agreement’s concrete structure and reliability.
The DMB, one of the largest independent interest and economic associations in Germany, based in Düsseldorf, represents approximately 33,000 member companies with over 800,000 employees. The association offers a wide range of added-value services to its member companies, including expertise in digitalization, succession, finance, internationalization, energy transition, and work & education.
The concerns of the DMB extend beyond the automotive sector. Rising tariffs on pharmaceuticals and other sectors could also negatively affect SMEs connected to these industries, raising operational costs and market risks. Given SMEs’ integration into these industries, they are vulnerable to increased costs and export difficulties.
The agreement serves as a political wake-up call, as the U.S. is increasingly using tariffs as a political tool to address financial deficits at home, undermining the principles of free and fair global trade. The unpredictable trade policies of the U.S. have made predictability of trade fragile, which is a concern for SMEs.
To maintain its position as the world's largest economic area and secure long-term innovations, jobs, and prosperity, Europe must consistently assert its economic interests, strengthen its competitiveness, and strive for greater economic and security independence. A more independent European Union in defense matters can credibly represent its economic interests.
More speed is needed, especially in the ratification of existing agreements like the Mercosur agreement and in the intensive renegotiation with important partner countries such as India, Indonesia, and Australia. Europe needs a forward-looking, innovation-friendly, and confident trade strategy.
The DMB's website for news and information about small and medium-sized enterprises in Germany is www.mittelstandswirtschaft.de. The association's website can be accessed at www.mittelstandsbund.de.
[1] Source: Statement from the automotive sector leadership of the DMB reflecting broader SME worries. [2] Source: Implications of tariff introduction across sectors, based on industry analysis and DMB's expertise.
- The financial implications of the tariff for SMEs in Germany may extend beyond the automotive sector, as rising tariffs on pharmaceuticals and other industries could increase operational costs and market risks for businesses connected to these fields.
- The rise in tariffs, combined with unpredictable trade policies, is a concern for SMEs in Germany, as it could impose significant costs and burdens during a critical transformation period, undermining the principles of free and fair global trade and potentially straining SMEs that depend on certain markets. These political factors can have a significant impact on business, finance, and general-news.
