A Shift in Tides: German Businesses in the US Express Disappointment Over Trump-era Trade Policies
US customs policy causing significant deterioration for German businesses operating in the country
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The mood among German businesses based in the United States has taken a significant hit due to President Trump's trade policies. According to a report by the German Chamber of Industry and Commerce (DIHK), just 14% of the surveyed companies now anticipate an improvement in the economy over the next year, a drastic drop from 38% in the fall of the same year. DIHK attributed this change to "disappointment" replacing previous optimism.
A staggering 44% of German companies now foresee economic contraction, a sixfold increase from the fall when only 7% held the same view.Volker Treier, DIHK's head of foreign trade, stated, "What we're currently witnessing is a kind of zigzag policy by the US government. This fosters uncertainty, discourages investments, and unsettles even well-established companies."
Around 33% of companies anticipate a positive business development, while a quarter foresees a decline. The survey, which polled approximately 100 German companies in the US, was conducted between March and mid-April.
"What companies are seeking today is consistency," Treier explained. Fluctuating tariffs and trade policies are hampering investment decisions and raising fundamental questions about the future viability of the US as a location for business. Currently, only 24% of companies plan to expand their investments there, compared to 37% in the fall of 2024. Conversely, 29% want to reduce their investments, a 11 percentage-point rise.
It's worth noting that recent US trade policies have raised concerns among German companies operating globally. In a spring 2025 survey by AHK (German Chambers of Commerce Abroad), 60% of German companies worldwide feared that US trade policy would negatively impact their local business, a figure that rose to 85% specifically for those operating in the US[2]. This apprehension stems from growing protectionist and unpredictable trade policies, which have exacerbated uncertainty and slowed economic activity[2].
Under these protectionist policies, German companies have witnessed a decline in investment plans, with only 24% planning to expand investments in the US[2]. This downward trend in confidence can be attributed to the unpredictable nature of US trade policy, which has created turbulence in the global market and dampened investment momentum[2]. While the analysis primarily focuses on the conditions during President Trump's tenure, it's essential to acknowledge that the ramifications of these policies linger in the present economic climate for these businesses in the US.
Source: ntv.de, AFP
[2] AHK World Business Outlook Spring 2025, [Source Link Here]
- The financial health of German businesses in the US is heavily influenced by the unpredictable trade policies set by the US government, as highlighted in the AHK (German Chambers of Commerce Abroad) World Business Outlook Spring 2025 report.
- The changing political landscape and trade policies are creating significant challenges for German companies, not only in the US but also globally, according to both the DIHK (German Chamber of Industry and Commerce) and AHK surveys.
- The US policy-and-legislation surrounding trade and finance has become a major concern for German businesses, as evidenced by the decrease in positive investment plans and the increases in economic pessimism among these companies, as reported by both DIHK and AHK.
