As US tariff hikes intensify, Germany’s export-oriented economy is feeling the strain. Helena Melnikov, CEO of the German Chamber of Commerce and Industry (DIHK), warns that US tariffs have jumped sharply to 15% from just under 2%, upending cost structures for countless businesses.
For many midsize exporters of machinery, automotive parts and chemicals, this means higher price tags on key shipments to the US. Faced with shrinking profit margins, some companies are forced to either absorb extra costs or pass them on to buyers, risking lost sales and market share.
“This sharp rise in duties reduces our competitiveness overnight,” Melnikov explains. “Companies now need to rethink supply chains, adopt digital tools to streamline operations and explore new markets to stay afloat.”
In response, German firms are accelerating efforts to diversify. They’re tapping into fast-growing markets in Asia and Latin America, investing in innovation around sustainable production and leveraging e-commerce platforms to reach customers directly. Such strategic pivots aim to soften the tariff blow and safeguard long-term growth.
As global trade tensions continue, Germany’s business leaders are calling on policymakers on both sides of the Atlantic to seek balanced solutions. Until then, adaptability and creativity remain key as firms navigate the new tariff terrain.
Reference(s):
cgtn.com
