United States-German customs accord meets with disapproval from Bergisch Regional Chamber of Industry and Commerce
The US-Bergish trade agreement, which imposes a 15% tariff on most EU exports to the US, including goods from Bergish metal-processing companies, has raised concerns among local businesses. The deal, while providing some planning security for Bergish companies [2], is expected to negatively impact metal-processing firms directly and indirectly affect service providers and suppliers connected to these companies.
Dr. Andreas Groß, Vice President of the Bergish Chamber of Industry and Commerce (IHK), expresses concerns about the reliability of promises from Washington, stating that while the deal is not ideal, a prolonged trade dispute would have had worse consequences for the Bergish economy [4]. The increased export tariffs can lead to decreased orders, which in turn lowers demand for logistics services, raw material suppliers, and related business services supporting the metal sector in Bergish [1][3].
Michael Wenge, CEO of the IHK, adds that the specific outcome of the agreement is heavily skewed in favor of the Americans [5]. The steel and aluminum tariffs, set at 50% by the US President in June, were not addressed by the negotiators and will remain in place for further negotiations in the coming weeks [6]. These tariffs are a burden for Bergish companies, as the region has many metal-processing companies [6].
Indirect effects on service providers and suppliers are expected, as affected companies will try to offset some of the costs through savings from suppliers. However, the exact extent of these impacts is yet to be fully understood, as detailed data specific to Bergish's economy beyond the tariff announcement itself has not yet been provided [3].
The Bergish region is heavily reliant on exports, making them vulnerable to trade-related disruptions. Exporting certain goods to the USA becomes unprofitable due to the tariffs, leading to a slowdown in production volumes and exports [1]. In response, the German Chamber of Industry and Commerce will launch a survey on the tariff agreement in the coming week [2], and the Bergish Chamber of Industry and Commerce (IHK) is participating in a nationwide survey on the same topic.
In conclusion, the US-Bergish trade deal's 15% export tariff is poised to harm Bergish metal-processing companies by raising export costs and competitiveness challenges, with ripple effects slowing related service providers and suppliers within the Bergish economy. The next few weeks will be crucial as further negotiations on the steel and aluminum tariffs take place, potentially offering a glimmer of hope for the region's metal industry.
- The increased export tariffs under the US-Bergish trade agreement may result in decreased orders for logistics services, raw material suppliers, and related business services supporting the metal sector in Bergish.
- As a response to the US-Bergish trade deal's 15% export tariff, Dr. Andreas Groß, Vice President of the Bergish Chamber of Industry and Commerce (IHK), contends that the specific outcome of the agreement is heavily skewed in favor of the Americans.
