BERLIN- The new tariff agreement between the United States (U.S.) and the European Union (EU) is fuelling concern among German businesses, with the majority expecting negative effects such as added costs and red tape, according to a survey.
The survey conducted by the German Chamber of Industry and Commerce (DIHK) and released on Wednesday, revealed that more than half (58 per cent) of the 3,355 companies polled said they expected the deal to increase their burden.
However, only 5 per cent foresee any positive effects.
Among firms with direct business ties to the U.S., 74 per cent anticipate negative effects.
“This agreement may have been politically necessary, but for many companies in Germany, it’s still a bitter pill,” said DIHK managing director Helena Melnikov.
“It brings new burdens instead of relief: higher tariffs, more bureaucracy, and reduced competitiveness.”
The EU and U.S. recently reached a compromise in a long-running trade dispute.
Under the deal – struck between U.S. President Donald Trump and European Commission President Ursula von der Leyen – most EU goods imported to the U.S. will face a 15 per cent tariff starting Aug. 7.
Many firms were already feeling the impact of existing U.S. trade policy, with 72 per cent reporting noticeable effects.
For companies with direct U.S. exposure, that figure rises to 89 per cent, with 80 per cent citing trade policy uncertainty and fear over new tariffs as the biggest concern.
Another 72 per cent said they were worried about the current 10 per cent base tariff and the planned increase to 15 per cent.
More than half of firms with direct U.S. market involvement plan to reduce trade with the U.S., while 31 per cent have adjusted how they handle customs costs – most passing at least some of the increases on to U.S. customers. (dpa/NAN)
