Ifo Institute Survey: US Tariffs Continue to Burden German Industry

Berlin (ANTARA) - A survey released by the Munich-based Ifo Institute on Wednesday (22 July) indicates that US tariff policies continue to burden the German industrial sector. Many manufacturers are postponing investments and passing increased costs on to customers in the United States. The survey, conducted in June among approximately 1,800 manufacturing companies, found that 62 percent of firms stated US tariffs had a negative impact on their business. In the mechanical engineering and automotive sectors, more than 70 percent of companies reported such negative effects. “Even in the second year of Donald Trump’s presidency, US tariff policy remains a significant burden for German industry,” the Ifo Institute stated. Companies are also bracing for tariffs to remain high in the long term, with 63 percent of respondents expecting the tariff levels to stay elevated until the end of President Trump’s term. The uncertainty is also affecting investment decisions. Nearly 40 percent of companies stated they have cancelled, postponed, or relocated investment projects in response to US trade policy. The impact is also being felt on domestic investment in Germany, with 16 percent of firms that had investment plans reporting they have cancelled projects within the country as a result of the policy, almost double the proportion reported a year earlier. To cope with the higher tariffs, companies are increasingly passing the additional costs on to customers. Among affected exporters, 34 percent stated they have passed the entire tariff cost on to US customers, while a further 28 percent have passed on more than half of the costs.