Majority of German firms see EU-U.S. trade deal adding to burdens, says DIHK

Among businesses directly engaged with the U.S. market, that figure climbed to 74 percent.

BERLIN, Aug. 6 (Xinhua) -- The newly announced trade agreement between the European Union (EU) and the United States is sparking anxiety rather than optimism among German businesses, with a majority anticipating increased burdens, according to a survey released Wednesday by the German Chamber of Commerce and Industry (DIHK).

The survey, which gathered responses from approximately 3,500 German companies, revealed that 58 percent expect the deal to bring new burdens. Among businesses directly engaged with the U.S. market, that figure climbed to 74 percent.

The agreement, finalized in late July between European Commission President Ursula von der Leyen and U.S. President Donald Trump, stipulates that most EU exports to the United States will now be subject to a 15-percent tariff. In return, the EU has committed to boosting imports of U.S. energy products and increasing investment in the American market.

DIHK Chief Executive Helena Melnikov described the deal as "a bitter pill" for the German economy. Instead of easing trade tensions, she warned, the agreement is likely to raise operational costs, introduce additional bureaucratic hurdles, and undermine competitiveness.

"It remains uncertain whether this compromise will hold in the long term," Melnikov said. "The European Commission must push for genuine economic improvements in the upcoming negotiations."

Since March, the U.S. has imposed escalating tariffs on EU imports, including steel, aluminum, automobiles, and auto parts, moves that have already inflicted significant damage on German exporters, Melnikov added.

According to the DIHK report, nearly 75 percent of all respondents have experienced negative impacts from U.S. trade policy, primarily due to policy uncertainty and higher tariffs.

The situation is even more dire for companies with direct operations in the United States: approximately 90 percent reported adverse effects. More than half said they plan to reduce trade with the U.S., while 26 percent intend to scale back or suspend investment in the American market.

Two-thirds of surveyed companies are pivoting to alternative markets, particularly emerging economies in Asia.

"There are no winners under U.S. tariff policy," Melnikov emphasized. "It harms businesses and consumers on both sides of the Atlantic."

Among firms affected by the tariff hikes, 84 percent said they will pass on at least part of the increased costs to their U.S. customers, a move that could further fuel inflationary pressures in the United States. ■