Following a recently reached trade agreement between the United States and the European Union, concerns are being raised regarding potential economic repercussions, particularly for Germany’s craft sector. Holger Schwannecke, General Secretary of the Central Association of German Crafts (ZDH), has cautioned about anticipated revenue declines and is advocating for economic reforms.
While only a limited number of craft businesses directly export to the U.S., the agreement is expected to create additional costs within the value chains of Germany’s export industries. Schwannecke explained to the Redaktionsnetzwerk Deutschland that many craft businesses operate as suppliers to these industries and the heightened tariffs will disproportionately impact them. These businesses are already facing structural challenges, including the ongoing shift towards electric mobility.
Schwannecke emphasized the need to bolster the appeal of Germany as a business location. He stressed that structural reforms are crucial to safeguard the competitiveness of the German economy and enhance its resilience to future challenges. Addressing these reforms, he believes, is key to ensuring the long-term stability and prosperity of the nation’s craft sector.