BERLIN: German companies have expressed continued concern over the EU-US tariff compromise, citing potential burdens on European businesses and trade with the United States, according to a survey.
The survey, conducted by the German Chamber of Commerce and Industry (DIHK) and covering 3,500 mostly industrial firms, found that 55% view the agreement as placing too heavy a burden on the European economy and favour a tough stance in further negotiations. Among companies with US business, 54% said the deal would reduce trade with the US.
DIHK foreign trade chief Volker Treier said that the US’ new protectionist trade approach risks backfiring, creating uncertainty rather than a stable investment environment.
Companies largely expect US customers to bear the higher import duties. Among firms planning to adjust their handling of US tariffs, 62% intend to pass the costs on to clients, while 15% said they would absorb the impact themselves.
The survey also found that 17% of companies with US operations were delaying investments in the US and 9% planned to reduce them.
The July deal, announced by US President Donald Trump and European Commission President Ursula von der Leyen, sets a 15% US tariff on most European goods while removing tariffs on US industrial products.
The DIHK urged that planned US tariff reductions on cars and metals be implemented quickly and recommended a mechanism to prevent future tariff hikes. Treier said that if necessary, the EU should not hesitate to respond with countermeasures and must negotiate robustly. — dpa
Oman Observer is now on the WhatsApp channel. Click here
