BERLIN (Reuters) -Almost 30% of German companies with investment plans in the United States have postponed their projects and 15% have cancelled them due to uncertainty over U.S. President Donald Trump’s tariff policy, an Ifo survey showed on Thursday. Domestic investments are also being halted due to tariff uncertainty. Some 21% of the 1,500 companies […]
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Almost 30% of German companies postpone US investments, survey shows
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BERLIN (Reuters) -Almost 30% of German companies with investment plans in the United States have postponed their projects and 15% have cancelled them due to uncertainty over U.S. President Donald Trump’s tariff policy, an Ifo survey showed on Thursday.
Domestic investments are also being halted due to tariff uncertainty. Some 21% of the 1,500 companies surveyed are postponing investments in Germany, while 8% said projects had been cancelled.
“Companies that are negatively affected by the Trump tariffs in particular are deciding to postpone or cancel investments in Germany,” the institute said in its report.
More than 60% of German companies report negative effects from the U.S. tariffs introduced in January, with export-oriented sectors such as mechanical engineering (87%) and metal production (68%) particularly affected.
“Trump’s tariffs are a profound trade policy shock, they are forcing companies to reassess global markets and realign investments,” said Ifo trade expert Andreas Baur.
Even companies with U.S. locations are suffering from the tariffs, with more than 80% reporting noticeable drawbacks.
One in three German industrial companies expects the U.S. market to lose importance due to Trump’s tariff policy.
Around 40% see growing sales opportunities within the European Union and in India, respectively, while opinions differ on the Chinese market.
(Reporting by Rene Wagner and Maria Martinez, Editing by Friederike Heine)