Following a recent trade agreement reached between the United States and the European Union, concerns are mounting regarding potential economic repercussions for German businesses, particularly within the skilled trades sector. Holger Schwannecke, General Secretary of the Central Association of German Crafts (ZDH), has cautioned against anticipated revenue declines and emphasized the need for structural reforms to bolster the country’s economic standing.
While the number of crafts businesses directly exporting to the U.S. remains relatively limited, Schwannecke highlighted the indirect impact of the agreement. Increased tariffs are expected to generate additional costs for crafts enterprises serving as suppliers within the value chains of Germany’s broader export industry. Many of these businesses are already navigating challenges stemming from ongoing structural shifts, such as the expansion of electric mobility.
“Further revenue declines are now to be feared” Schwannecke stated, underscoring the vulnerability of businesses operating within complex supply networks.
The ZDH is advocating for measures to reinforce Germany’s attractiveness as a business location. Schwannecke stressed that structural reforms are crucial tools for safeguarding the competitiveness of the German economy and enhancing its resilience in the face of evolving global trade dynamics. He argued that prioritizing these reforms is essential to ensure the long-term viability and strength of German businesses.
