Cautious Outlook: German Companies' Perspective on the US Market Sours
Deterioration of U.S. Perception Among German Firms Regarding Trade Policy - U.S. sentiment among German corporations significantly worsens, negatively impacting trade policy.
These days, nearly half of German businesses operating in the ** States** are forecasting a downturn in the economy, according to the German Chambers of Commerce (DIHK). This pessimistic outlook represents a staggering six-fold increase compared to the expectations in the autumn, when only 7% anticipated such a turnout. As Volker Treier, DIHK's head of foreign trade, notes, "The inconstant policies of the US government stir up uncertainty, hamper investments, and destabilize even long-standing companies."
Around one third of companies remain optimistic about business prospects, while a quarter anticipate a decrease. The survey, involving approximately 100 German enterprises in the US, was carried out between March and mid-April.
According to Treier, what German companies long for is dependability. The frequent changes and reversals in tariff policies have put a halt to investment decisions and raised fundamental questions about the US as a viable business destination. Currently, only 24% plan to expand their investments, down from 37% in fall 2024. In contrast, 29% are eager to reduce their investments there, a jump of 11 percentage points.
- German Companies
- US Market
- DIHK
- Volker Treier
- Tariff Policies
- Uncertainty
- Investments
- Despite the optimism of one-third of German companies, the pessimistic forecast of nearly half of them about the US Market, as indicated by the German Chambers of Commerce (DIHK), is a significant concern due to the unpredictable tariff policies and frequent changes in the US government, which stir up uncertainty and hamper investments.
- As Volker Treier, DIHK's head of foreign trade, emphasizes, German companies operating in the US are longing for dependability, as the inconstant policies of the US government have put a halt to investment decisions, raised fundamental questions about the US as a viable business destination, and led to a decrease in planned investments, with only 24% planning to expand, compared to 37% in fall 2024, while 29% are eager to reduce their investments.
