Global Trade Barriers

International business activity is becoming increasingly difficult for German companies. In 2025, 58 percent of firms report facing more trade barriers – the highest level in recent years. Particularly burdensome are local certification requirements, stricter security regulations, tariffs, and a growing number of local content requirements that compel businesses to produce locally. This development complicates export processes, lengthens market entry, and significantly increases compliance costs.

Export-oriented industrial companies and globally active medium-sized businesses are particularly affected: supply chains become more complex, international expansion becomes riskier, and planning security noticeably decreases.

Impacts of US Trade Policies

The trade policies of the new US administration are emerging as a key risk factor for German exporters. Seventy percent of internationally active companies anticipate negative impacts from new or announced US tariffs. Particularly affected are sectors with transatlantic value chains, such as mechanical engineering, automotive, chemical, and electrical industries.

Business prospects in North America are worse than they have been in years. Company reports indicate that threatened tariff increases, uncertainties surrounding the USMCA, and geopolitical tensions dampen willingness to invest and market development. Even companies without direct US business feel the impact, whether through diverted trade flows, sanction risks, or stricter US certifications.

Challenges from Germany and the EU

In addition to geopolitical factors, increasingly domestic regulations hinder foreign business activities. Eighty percent of firms view German or European policy directives as significant trade barriers.
The most burdensome include:

• the German Supply Chain Due Diligence Act (LkSG) and its trickle-down effects,
• implementation of the EU Carbon Border Adjustment Mechanism (CBAM),
• inconsistent packaging and product regulations within the EU,
• complex visa and posting requirements,
• long approval periods at BAFA and customs.

For many medium-sized businesses, the bureaucratic burden becomes a competitive disadvantage. Companies also report that uncertainties in the interpretation of new EU rules lead to additional effort and significant compliance costs. For ministries and policymakers, the report provides hints on where relief and harmonization are urgently needed.

Business Situation and Perspectives in World Regions

Global business conditions remain challenging in 2025: Only 23 percent of companies report good foreign business, while 30 percent mention a poor situation. The global balance stands at minus seven points – still clearly in the negative range.

Regional differences are striking:

North America – Most Difficult Market

Expectations for the USA, Canada, and Mexico are collapsing. Thirty-eight percent of companies anticipate worsening business conditions in the US. Trade conflicts, tariff risks, and regulatory uncertainty dominate.

Europe – Slightly Recovering, but Still Weak

The Eurozone shows a slight recovery compared to the previous year but remains burdened by high energy prices, bureaucracy, and stagnant demand. Business outlook: Balance –8 points.

Asia-Pacific – Stable to Slightly Better Prospects

The region (excluding China) benefits from the diversification of global supply chains. For the first time in years, companies see nearly balanced prospects.

China – Challenging Environment

Conditions remain tense. Localization requirements, weak domestic economy, and geopolitical conflicts weigh on Germany–China business. Business balance: –14 points.

South and Central America – Cautiously Positive

Prospects brighten slightly here. The balance improves from –11 to –7 points – a hint at possible market dynamics supported by the EU-Mercosur perspective.

Middle East & Africa – Heterogeneous, but with Glimmers of Hope

Expectations in North Africa and Sub-Saharan Africa remain negative but show little improvement compared to the previous year. The Middle East sees positive and negative expectations converging – a sign of growing stabilization.

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Going International 2025 (PDF, 689 KB)(only available in German)