The German machinery industry is in turmoil: A tariff rate of 30% on exports to the USA could jeopardize the survival of numerous companies. Even a tariff rate of 10% is already considered critical. Such tariff increases would cause significant negative impacts on the economic situation of exporting companies and would also affect investors in German-speaking regions.
The Development of US Tariffs
Currently, there are relevant developments regarding US tariffs for German exporters. The USA has even increased its tariffs on steel imports to up to 50 percent starting June 2025. Although these figures initially refer specifically to steel, they illustrate a trend towards significantly increasing import tariffs in the USA. A tariff rate of 30% would therefore be quite expected in the context of current US trade policy and would pose a considerable burden for many machine-building companies.
Impact on Competitiveness
German companies fear that such high tariffs could severely impair their competitiveness. Even tariff rates of 10% are considered critical, as they increase export costs and would raise the prices of products from Germany in the US market. The consequence could be a decline in orders, which may threaten the survival of certain companies in the long term.
Risks for Investors
For investors, this means greater uncertainty regarding investments in export-oriented German machinery companies, as their revenues and profits can fluctuate significantly due to such protectionist measures.
In summary:
- A tariff rate of 30% is considered existentially threatening for many German machine builders.
- 10% tariffs are critical for the industry.
- Current increases in US tariffs (e.g., steel up to 50%) indicate a protectionist trend.
- Risks for corporate profits and thus also for investors in German-speaking regions.
This situation therefore requires careful monitoring of trade relations and potential political countermeasures or negotiations to mitigate the consequences.