02/04/2026 - “One year of US tariff policies has left deep marks on transatlantic economic relations. Massive tariff increases, abrupt changes, and ongoing legal uncertainty are significantly hindering trade with our most important sales market. German exports to the USA have dropped by nearly ten percent within a year—and the outlook remains negative. German companies' monthly direct investment flows into the USA almost halved last year. The production relocation to the USA sought by the US government at Europe's expense, therefore, remains unrealised. A current DIHK survey shows that half of German companies still intend to postpone or reduce their US investments.

Another US objective is failing as well: Nearly three-quarters of German companies state they do not bear the additional tariff costs themselves but pass them entirely or partially onto their customers in the USA. The German government and the EU must push jointly for the removal of unjustified US tariffs—especially in the steel and aluminum sectors. Additionally, new threats, like the so-called Section 301 investigations, by which Washington could unilaterally justify new tariffs, must be counteracted early and effectively. It's clear that these accusations are baseless. European companies neither build overcapacities to the detriment of the USA nor gain competitive advantages through forced labor practices. On the contrary, the EU and the USA share common interests in addressing distortions in competition arising from China.

The implementation of the EU-US agreement can limit further escalations—the economy's clear expectation is that the USA complies with the agreements. In parallel, the EU and the German government must use the time wisely and systematically reduce strategic dependencies, also with respect to the USA. Europe now needs decisive answers—regarding diversification of supply chains, expansion of security architecture, digital sovereignty, and improved competitive conditions.”