Trump's Trade Policies Leave German Companies in the USA Disappointed and Uncertain
U.S. customs policy causing significant deterioration for German companies in America
In the current political climate, German companies with operations in the United States are expressing significant disillusionment due to President Donald Trump's trade policies. As per a survey conducted by the German Chamber of Industry and Commerce (DIHK), only 14% of these companies now anticipate an improvement in the economy within the next 12 months, a dramatic drop from the 38% who held a positive outlook just a few months back. DIHK explained, "[There's] a shift from hope to disappointment."
One of the core reasons behind this negative sentiment is the seeming policy volatility displayed by the US government. This uncertainty is deterring investments and unsettling even long-established businesses, according to DIHK's Head of Foreign Trade, Volker Treier. He added, "We're witnessing a zigzag approach from the US government, making investments risky and raising serious doubts about the USA's future as a suitable location."
Around a third of these companies anticipate a positive business development, yet a quarter expects a downturn. The survey, which gathered around 100 German companies based in the USA between March and mid-April, revealed that 44% now expect economic contraction – a six-fold increase from the number voicing such concerns in the fall.
Treier stated, "What these companies are craving right now is trust." Tariff changes and their reversals are hindering investment decisions and presenting "fundamental questions" regarding the future of the USA as a business hub. While 37% had planned to boost their investments in the USA by the end of 2024, only 24% currently intend to do so now. On the contrary, 29% are considering reducing their investments, an alarming increase of eleven percentage points.
Sources: ntv.de, AFP
Further investigation reveals that an overwhelming 85% of German companies operating in the USA expect negative repercussions from Trump's trade policies, as reported in the AHK World Business Outlook Spring 2025. This sharp increase in negative sentiment contrasts with previous assessments, in which the proportion expecting negative effects grew from 56% to 69% globally, with a notable spike in the USA [2]. The unpredictable US trade policies have led to uncertainty, eroding confidence and slowing economic growth in North America [2]. Investment plans have taken a hit, with only 24% of companies currently planning to expand their investments in the USA – a notable decline from 37% previously [2]. This decrease signals a broader trend of uncertainty and hesitation in making long-term investments amidst uncertain market conditions. The protectionist trade policies, including tariffs, have not yielded their intended results of promoting investment, but rather contributed to a decline in investment willingness and delayed new projects [2].
- The German Chamber of Industry and Commerce reported that the shift from hope to disappointment among German companies operating in the United States is primarily due to President Donald Trump's unpredictable and volatile employment and trade policies.
- The AHK World Business Outlook Spring 2025 found that an overwhelming 85% of German companies anticipate negative repercussions from Trump's employment and trade policies, which have significantly eroded confidence in the USA as a suitable location for business and investment.
- The unfavorable business environment created by Trump's policies has prompted many companies to reconsider their investment plans in the USA, with only 24% currently planning to expand their investments – a significant decrease from previous estimates.
