Trade Uncertainty in Baden-Württemberg Export Industry: Half of Companies Expect Decrease in Exports to US
U.S. Imports Anticipated to Decrease According to Industry Forecasts - Anticipated Decrease in Export Shipments to the United States by the Industry, According to a Poll
Here's a lowdown on the turbulent waters in the export industry of Baden-Württemberg, Germany, due to the unpredictable US trade policy. The Industry and Commerce Chamber of the Region of Stuttgart (IHK) conducted a survey that paint a grim picture for exporters.
Over half the exporting businesses in the southwest anticipate seeing a decrease in exports to the US within the next year. Roughly 61% of these companies believe higher costs will be passed on to consumers, while 16% expect a decline in their profit margins.
IHK Region Stuttgart, responsible for foreign trade within the Baden-Württemberg Chamber of Industry and Commerce, views these figures as a "warning signal" for the export-oriented economy in the region. IHK President Claus Paal explains, "The trade conflict with the US is becoming a constant burden for many of our companies." In 2020, a whopping 34.8 billion euros worth of goods were shipped to the US, but the southwest economy could suffer "significant economic damage" without a turnaround in US policy.
Reacting to US tariffs, around 1 in 10 industrial companies in the country intend to relocate parts of their production to existing US sites, or build additional capacities there. Almost a quarter of companies fret increased competition from products from third countries on the European market.
The results are from an additional question in the early summer business climate survey conducted between mid-April and mid-May. Over 1,250 industrial companies participated in the survey, which inquired about the consequences companies expected for exports if the US protectionist trade policy continued.
The ongoing legal wrangling over US President Donald Trump's tariffs keeps the global economy tensed. A federal court in New York recently deemed almost all of Trump's tariffs, imposed under an emergency law, as illegal. The very next day, Trump struck back, with an appeals court overturning the decision. The dispute remains unsettled and is expected to consume more court time.
The legal dispute encompasses the tariffs Trump imposed on his "Independence Day" in early April, which he temporarily suspended due to market downturn. Many trading partners of Trump, including the European Union, are already engaging in talks with the US to avoid tariffs through new trade agreements.
- US
- Exports
- IHK
- Stuttgart
- Export industry
- Trade conflict
- US President Trump
- The ongoing legal disagreement over US President Trump's tariffs, implemented under an emergency law, continues to escalate, with a federal court in New York ruling nearly all tariffs as illegal, followed by an appeals court overturning the decision the next day.
- IHK Region Stuttgart, responsible for foreign trade within the Baden-Württemberg Chamber of Industry and Commerce, views the alarming figures indicating over half of exporters in the southwest anticipate a decrease in exports to the US as a "warning signal" for the export-oriented economy in the region.
- In response to US tariffs, some industrial companies in the country are considering relocating parts of their production to existing US sites or building additional capacities there, which could impact the employment and vocational training policies within these industries.
