The U.S. Market: German Businesses Feel the Heat Under Trump's Trade Policies
U.S.-Germany Trade Relations: Deteriorating Attitudes of German Firms in America - Deterioration of sentiment among German businesses in the United States regarding trade policy
Looks like the Trump administration's trade polices are giving German companies a big fat headache, judging by a survey conducted by the DIHK. A whopping 44% of German businesses with a presence in the US reckon the economy is about to take a nose dive - that’s a sixfold increase compared to the fall of 2024 when just 7% had such pessimistic views.
Volker Treier, DIHK's head of foreign trade, is none too pleased with the wild zigzags in the US government's policies. He's blunt: "We're looking at a policies-on-a-dime approach coming from the US government. It causes uncertainty, puts a freeze on investments, and even shakes up established businesses."
Roughly one third of companies are still hopeful about business prospects, while a quarter dreads a downturn. The survey polled around 100 German companies between March and mid-April.
"What these businesses are yearning for is stability," explains Treier. The constant switcheroo on tariffs has entrepreneurs hesitating on their investment decisions and posing some serious questions about the future of the US as a destination. Comparing to 37% of companies planning to boost investments in the fall of 2024, only 24% intend to do so now. A significant 29% are eyeing a reduction in their investment, marking an increase of 11 percentage points.
- US
- DIHK
- Trade Policy
- Tariff Policy
- Trump Administration
- Business Confidence
- Investment Plans
- Chamber of Industry and Commerce
- Volker Treier
Additional Insights:
The current sentiment among German companies with operations in the U.S. is plummeting due to the Trump administration's trade policies, as evidenced by a survey released by the German Chamber of Commerce in May 2025. The report points to a slew of problems, including idle factories, delayed shipments, and a crumbling business landscape. As a result, many companies are exploring longer-term strategies in the U.S., given the challenges they’re facing[1].
Trump's tariffs are stirring up one big storm. Estimates suggest up to 90,000 jobs in Germany could be at risk within a year due to the tariff measures[2]. The uncertainty and potential economic costs associated with these policies are prompting calls for a reboot in EU-U.S. trade talks, with some even advocating for counter tariffs and expanding trade networks beyond the U.S.[1].
Despite a short breath in certain tariff levies, the broader international and economic picture isn't looking too rosy. With elections going down in both EU and the U.S., the outlook for any meaningful trade policy changes remains unclear[1]. Overall, German businesses are facing a tough market battle in the U.S, which is affecting their investment strategies and economic stability.
- German businesses operating in the US are expressing growing concerns about the economy's future due to the Trump administration's trade policies, as revealed in a survey by the DIHK, with a sixfold increase in pessimistic views compared to fall 2024.
- The trade policies of the Trump administration, including tariffs, are causing uncertainty, freezing investments, and even shaking up established businesses, according to Volker Treier, the head of foreign trade at the DIHK. The constant shifts in tariffs are causing German companies to question the future of the US as a destination for their investments.
