BERLIN (Reuters) -Nearly 60% of German companies expect the European Union’s trade deal with the United States to create more burdens for them through higher tariffs and more bureaucracy, a survey said on Wednesday. That number rises to 74% for companies with a direct U.S. business, according to a flash survey by the German Chamber […]
Business
Nearly 60% of German firms expect EU-US deal to burden them more, finds DIHK
Audio By Carbonatix
BERLIN (Reuters) -Nearly 60% of German companies expect the European Union’s trade deal with the United States to create more burdens for them through higher tariffs and more bureaucracy, a survey said on Wednesday.
That number rises to 74% for companies with a direct U.S. business, according to a flash survey by the German Chamber of Commerce and Industry (DIHK) of around 3,500 firms.
In contrast, 37% do not foresee any effect, while only 5% expect economic relief as a result of the deal that will provide for 15% tariffs on most EU goods starting Thursday.
“This agreement may have been politically necessary, but for many companies in Germany, it is still a bitter pill to swallow,” said DIHK chief executive Helena Melnikov.
Even more problematic is lingering uncertainty on whether the agreement will hold, said Melnikov, urging the EU Commission to push for improvements in further talks with the U.S.
Some 80% of companies with direct U.S. business said their main concern is new tariffs coming into play, with nine out of 10 already seeing negative effects of the current policy.
Almost two-thirds of German companies are turning their attention to new markets as a result, with the European single market in particular seen as stable and predictable.
(Reporting by Miranda Murray; editing by Matthias Williams)