Small and Medium Enterprises (SMEs) in Germany express worry over potential unintended consequences of US tariffs

Small Business Owners in Germany Fretting Over Indirect Impact of US Tariffs

Concerns Among Small and Medium-sized German Businesses Focus on Indirect Impacts Regarding Customs Duties - Small and Medium Enterprises (SMEs) in Germany express worry over potential unintended consequences of US tariffs

Here's the lowdown on what's troubling German businesses, according to surveys by DZ Bank:

• Many small and medium-sized enterprises (SMEs) in sectors like metal, automotive, and machinery are anxious about the ripple effects of US tariffs, with almost half (48%) fearing indirect repercussions such as increased costs due to suppliers hiking their prices in response to the tariffs.
• Interestingly enough, only 15% of the 1,007 SMEs surveyed believe they are directly affected by the tariffs.
• On the flip side, a quarter of the companies (25%) remain undeterred and unfazed by the tariffs.
• However, potential counter-tariffs from the EU could prove more detrimental to German businesses than the actual US import duties. Around 29% of companies anticipate direct consequences such as higher costs, while a mere 19% expect no negative impact whatsoever.

Claus Niegsch, an analyst at DZ Bank, suggests that the concern over escalating costs might be premature. He posits that, while US goods could become more expensive, there's a chance that goods initially earmarked for the American market could land in Europe, which in turn could lead to lower prices here.

This survey was conducted between March 6 and March 26, when the exact extent of tariffs on goods from the EU was still unknown, but a 25% tariff for the automotive sector was already on the table, and tariffs of 25% on steel and aluminum had already taken effect since March 12. The survey is said to be representative of the German business landscape.

• Germany
• DZ Bank AG
• USA
• SMEs
• EU
• Frankfurt am Main
• Metal
• Machinery
• Potential Counter-tariffs (EU)
• Higher Purchase Prices (US Tariffs)
• Indirect Consequences (US Tariffs)
• Competitive Pressures (US Tariffs)
• Claus Niegsch (DZ Bank Analyst)
• Supply Chain Cost Increases (US Tariffs)

1. Small and medium-sized enterprises (SMEs) in Germany, particularly in sectors like metal, automotive, and machinery, are expressing concerns about the indirect impacts of US tariffs, as nearly half (48%) of them fear increased costs due to suppliers raising their prices in response to the tariffs.
2. Claus Niegsch, an analyst at DZ Bank, has questioned the concern over escalating costs caused by the US tariffs, arguing that while US goods could become more expensive, there may be a possibility that goods initially intended for the American market could wind up in Europe, resulting in lower prices in Germany.
3. Around 29% of companies in Germany anticipate direct consequences from potential counter-tariffs from the EU, such as higher costs, while a mere 19% expect no negative impact whatsoever.
4. DZ Bank AG, a German banking group headquartered in Frankfurt am Main, conducted a survey of 1,007 SMEs between March 6 and March 26, 20XX. The survey revealed that although only 15% of SMEs believe they are directly affected by the US tariffs, many are worried about the ripple effects on their businesses and the potential increase in supply chain costs.

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