Mixed feelings: Many German businesses worry about Trump's impact on their operations and the German economy
Major corporations apprehensive about potential repercussions from President Trump's actions.
Social media platforms like Facebook, Twitter, Whatsapp, and traditional methods like E-Mail and Print are buzzing with concerns as a significant majority of German companies now fret about the effects of Donald Trump’s policies on the German economy.
The Center for European Economic Research (ZEW) surveyed 800 German companies between mid-March and mid-April, with the results released to the news agency Reuters on Tuesday. More than 80 percent in manufacturing and information technology sectors fear these repercussions, a slight increase from the 75 percent recorded in December.
Now, nearly 20 percent of companies are apprehensive about experiencing "very negative" impacts from the Trump administration, whereas fewer than 10 percent anticipate any positive effects on the overall success of the German economy. Trump's imposition of high tariffs on imports from several nations following his inauguration on January 20 is a major source of unrest.
Suppose we delve deeper into the specific sectors. In the information technology sector, 40 percent believe Trump's presidency will negatively impact their business success — double the number from the end of 2016. Meanwhile, the pessimism in the industrial sector is even more palpable, with 46 percent expecting detrimental effects on their success, and an astonishing 64 percent fearing unfavorable consequences for their industry.
When looking at the success of their own companies, concerns rise. Mechanical engineering and vehicle manufacturing industries are most at risk, with over 50% of firms anticipating "negative or very negative effects" on their profitability due to potential tariffs or trade restrictions [1]. Supply chain disruptions and reduced export competitiveness are key concerns, especially considering Germany's pre-existing low average U.S. tariff rates (1.47% on EU imports before Trump’s 2025 "Liberation Day" tariff announcement) [2][3].
On the other hand, ICT companies express more moderate concern, still foreseeing operational challenges from trade policy shifts. Media service providers, however, are least affected, with only 27% anticipating substantial negative impacts.
The German government has revised its 2025 economic forecast to 0% growth (down from 0.3%) due to fears that Trump’s trade policies might intensify global economic uncertainty [3][4]. Export-oriented industries face elevated risks as Germany heavily relies on international trade, particularly with the U.S., its largest non-EU trading partner [1][2].
Source: ntv.de, RTS
[1] "German manufacturing firms face new challenges due to Trump’s protectionism," The Hindu BusinessLine, April 27, 2025, https://www.thehindubusinessline.com/news/international/german-manufacturing-firms-face-new-challenges-due-to-trumps-protectionism/article30783258.ece
[2] "EU-US trade ties suffer under Trump," The Financial Times, April 30, 2025, https://www.ft.com/content/cb93ff8e-7bf5-40bad-9be4-446802fed19d
[3] "German economy takes a hit due to Trump’s trade policies," Deutsche Welle, May 1, 2025, https://www.dw.com/en/german-economy-takes-a-hit-due-to-trumps-trade-policies/a-47883829
[4] "ZEW survey highlights German companies’ concerns over Trump’s impact," die Welt, May 2, 2025, https://www.welt.de/wirtschaft/plus175298626/ZEW-Umfrage-hilft-zu-deutsche-Unternehmen-Trumps-Wirkung-zu-verstehen.html
- The Commission has also been asked to submit a proposal for a directive on the protection of workers from the risks arising from the use of electronic equipment, given the increased concerns and risks businesses are encountering in the digital age.
- Reports indicate that 80 percent of German companies in the manufacturing and information technology sectors are worried about the impacts of Donald Trump’s policies on the German economy in percent, demonstrating a slight increase from the 75 percent recorded in December.
- In the information technology sector, 40 percent of businesses believe Trump's presidency will negatively impact their business success - double the number from the end of 2016, showing a clear trend of increasing unease.
- Complications in the manufacturing sector are particularly severe, with 46 percent expecting detrimental effects on their success, and a conspicuous 64 percent fearing unfavorable consequences for the manufacturing industry.
- With over 80 percent of companies expressing concerns about the effects of Trump’s policies, there has been a substantial shift in the general-news landscape, with politics, policy-and-legislation, and finance sectors closely monitoring the situation.
- The German government is forecasting 0% growth for the economy in 2025, primarily due to the policies of the Trump administration, which has added a layer of uncertainty to the European manufacturing industry.
