A recent survey of German business leaders indicates that the country’s industrial sector is not yielding to US trade pressure. The study, conducted by consulting firm Horvath and reported in the Friday edition of Handelsblatt, polled 1,000 executives to gain insights into strategic priorities for the next five years.
The survey suggests that German companies do not intend to increase investments in the United States beyond current levels, potentially indicating that the economic pull desired by US President Donald Trump will not materialize. Trump has advocated for tariffs on imports to incentivize foreign companies to relocate production to the US. However, the survey indicates that Germany’s fluctuating US policies are primarily viewed as a source of uncertainty.
Furthermore, Germany’s domestic economic benefit is showing a slight decline. While German industrial firms plan to allocate an average of 37 percent of their investment budgets within Germany – still the highest proportion – this figure represents a two-percent point decrease compared to a similar survey conducted one year ago. Notably, over half of the companies surveyed plan to reduce jobs in Germany over the next five years.
In contrast to reduced domestic investment, German companies are prioritizing expansion in Eastern Europe, Southern Europe and India. Plans include increasing production and creating new jobs in these regions.
