A survey has shown German companies in the United States are showing some reluctance to invest given the U.S. presidential election.
According to a survey by the German Chamber of Industry and Commerce (DIHK) published on Monday companies are waiting to see what the future economic policy of the country will be.
DIHK foreign trade chief Volker Trier said the global economic environment could become more complicated with the U.S. election outcome, which would put a strain on international trade relations.
Prospective tariff increases, which have been an ongoing election campaign issue, pose a particular risk for German companies, he said, referring to Republican presidential candidate Donald Trump.
“The prospect of tougher trade policy, particularly under a potential Trump administration, could further exacerbate concerns about supply chain disruptions and trade barriers,” Trier said.
Michael Hüther, director of the German Economic Institute, has also warned against Trump’s intention to introduce import tariffs, if elected.
“For the export-oriented German economy, which is already in a profound structural crisis, this would be an expensive disaster.’’
Hüther added that the U.S. is Germany’s most important export partner. “Mechanical engineers, carmakers and pharmaceutical companies are particularly reliant on trade with the U.S.,” he said.
Overall, however, German companies expect business in the U.S. to remain stable, according to the DIHK, citing a special evaluation of the US in a survey of member companies of the German Chambers of Commerce Abroad network.
According to this, 38 per cent expect better economic developments in the US in the next 12 months. (dpa/NAN)
