Concerns are mounting within German industry regarding potential negotiations between the United States and the European Union aimed at averting planned tariffs. Helena Melnikov, Managing Director of the German Chamber of Industry and Commerce (DIHK), cautioned against the possibility of sectoral agreements, particularly impacting key industries such as pharmaceuticals and automotive, in an interview with the Frankfurter Allgemeine Zeitung.
Melnikov argued that while seemingly appealing in the short term, such agreements could swiftly undermine the EU’s strategic unity. She warned that granting exemptions for specific industries risks creating divisions within Europe and jeopardizing the interests of smaller and medium-sized enterprises (SMEs) which lack the lobbying power to represent themselves effectively in Washington.
The DIHK representative emphasized the need for a unified and strategic approach from the EU, asserting that a hasty agreement yielding to political pressure could have significant repercussions for the German economy. Approximately 1.2 million German jobs are linked to exports to the U.S., where around 6,000 German companies have created roughly one million jobs. This conflict affects a wide range of sectors, from aluminum processing and automotive suppliers to chemicals, industrial specialties, pharmaceuticals and medical technology, as well as winemaking, impacting numerous successful SMEs.
Melnikov advocated for robust agreements that guarantee fair competition and sustainably de-escalate trade conflicts, insisting that any accord with the U.S. must apply to all industries and adhere to World Trade Organization (WTO) rules. The European Commission and the German government bear the responsibility of ensuring this occurs.
Germany, Europe’s largest exporter and the world’s third largest behind China and the U.S., relies heavily on the American market. U.S. exports are valued at €161 billion annually, representing 10% of German exports and 30% of all EU exports to the U.S. The U.S. absorbs nearly a quarter of German pharmaceutical exports, 17% of automotive and machinery exports and 8% of steel exports. The trade surplus reached approximately €76 billion in 2024, representing 39% of the EU’s total surplus with the U.S.
DIHK data reveals that the initial tariff announcement in April led to a 10.5% decrease in German exports compared to the previous month. May saw a further decline of 7.7%. DIHK estimates that continued uncertainty could potentially reduce German exports to the U.S. by €1 billion per month.