Despite Trump's Tariffs, German Companies Not Planning to Leave US Market

The DIHK, a German chamber of commerce, believes that a sudden withdrawal of German companies from the US market is not a viable option, despite the country's potential recession and Trump's trade policies. The organization's external trade chief, Volker Treier, emphasizes that the trade volume between Europe and the US is too large to be replaced by any other market. Instead, companies should adopt a "targeted risk management" strategy, diversifying their supply chains and exploring new markets, such as the EU's trade agreements with Mercosur and India.

The German Chamber of Commerce and Industry (DIHK) has reassured German companies against a hasty withdrawal from the US market, despite potential recession and trade tensions. With the transatlantic trade volume standing at a significant size, the organization advocates for a targeted risk management strategy [1].

German companies, according to the DIHK's external trade chief, Volker Treier, should diversify their supply chains and explore new markets to mitigate risks [2]. The EU's trade agreements with Mercosur and India could serve as viable alternatives.

In a recent survey conducted by the DIHK and the German Chambers of Commerce Abroad (AHK), nearly a third of the globally active AHK member companies anticipate an economic upturn in the current year, while one in five still expect a downturn [2]. Although declining inflation rates and hopes for interest rate cuts have improved companies' economic expectations, geopolitical tensions and trade conflicts continue to dampen confidence.

The DIHK's stance echoes Germany's economic performance in the global arena. Germany, known for its export-oriented economy, faces challenges in navigating the complexities of international trade. Nevertheless, the organization remains committed to representing the interests of German businesses in Europe and beyond [1].

References:
[1] DIHK. (n.d.). International Economy. Retrieved from https://www.dihk.de/en/international/international-economy
[2] DIHK. (2023, February 15). Confidence for Global Markets, But Not for Their Own Foreign Business. Retrieved from https://www.dihk.de/en/international/confidence-for-global-markets-but-not-for-their-own-foreign-business--116946