In a move that has sparked concerns, the German Federal Association of Wholesale and Foreign Trade (BGA) is warning of “enormous impacts” on German exports due to high US tariffs. According to the BGA’s president, Dirk Jandura, higher tariffs would need to be passed on to customers, making German goods more expensive and less competitive. The pharmaceutical, automotive and machinery sectors, as well as medical technology, are particularly at risk.
Not only Europe, but also the United States, will likely suffer from the high tariffs, Jandura believes, as they would have an inflationary effect. The exact impact is still unclear, as President Trump has only made an announcement so far and it is not certain that the tariffs will be implemented in the end.
However, high tariffs do not necessarily mean the loss of the market, as some exporters, such as those in the specialty chemicals or medical products sector, have a strong market position, Jandura said. The outcome will depend on further price negotiations. Some companies are already expanding their production in the US to avoid tariffs, but Jandura does not expect a sudden wave of relocations to the US, citing the current US policy as “too erratic”.
The Association of German Chambers of Commerce and Industry (DIHK) also expressed concerns, describing the new tariff announcement as a “provocative U-turn”. A 50% tariff would hit German companies hard, weakening the global trade order, said DIHK’s foreign trade expert, Volker Treier.
Treier emphasized the importance of maintaining a dialog between the EU and the US and warned against a hasty agreement that could have negative long-term consequences for Germany’s economic location. He urged the EU to continue its dialog-oriented and self-assured negotiation strategy, citing the positive signals from the G7 finance ministers’ meeting in Canada.
The German Federal Minister of Economics, Katherina Reiche, also criticized the move, saying, “Zollkonflikte kennen keine Sieger” (Tariff conflicts have no winners). She emphasized the need for the European Commission to reach a negotiation solution with the US, as high tariffs would harm both the US and the EU equally. Reiche stated that the government is in close contact with the European Commission to address the issue.