Small and Medium Enterprises (SMEs) in Germany express apprehension over potential indirect impacts of US tariffs

Concerning U.S. Taxes, middle-sized German businesses largely focus on potential indirect impacts.

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2025 May 8 . 12:41 PM

2 min read

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Small and Medium Enterprises (SMEs) in Germany Worry Over Indirect Impacts of US Tariffs

U.S. Trade Policies: Small and Medium Enterprises in Germany Mainly Worry About Secondary Impacts - Small and Medium Enterprises (SMEs) in Germany express apprehension over potential indirect impacts of US tariffs

Small and medium-sized enterprises (SMEs) in Germany, particularly those in the metal, automotive, and machinery sectors, are expressing concern over the indirect consequences of US tariffs, according to a study from DZ Bank. These businesses fear potential price hikes for their own products in the States or a decline in export demand to the American market.

Around 66% of companies in these sectors foresee negative indirect outcomes as a result of their trading partners being affected by US tariffs, impacting their own commercial prospects. In contrast, 29% of firms are unfazed by the tariffs. However, they remain concerned that counter-tariffs from the EU might prove even more detrimental to their operations.

Between March 6 and March 26, DZ Bank surveyed 1,000 owners and managers of German SMEs. At the time, tariff details for goods from the European Union hadn't been finalized, although discussion centered on a 25% tariff for the automotive sector. Since March 12, tariffs of 25% on steel and aluminum have remained in effect. The survey purportedly represents the overall SME population in Germany.

Comments from DZ Bank analyst Claus Niegsch suggest that the worry over rising costs may be premature: "While US goods might become more costly, goods originally intended for the American market that end up in Europe instead could lower prices here as a direct result of Trump's tariffs."

Key Points:

The metal, automotive, and machinery sectors are among those most affected by these tariffs, as they can lead to increased costs and decreased competitiveness.
The German economy is facing pressure due to high energy costs, weakening demand from China, and competitive pressure from Asian goods. US tariffs further complicate the situation.
SMEs in Germany generally perceive the business environment as challenging due to bureaucracy and high energy costs. The ongoing tariffs add to the uncertainty and might prompt SME strategies such as seeking new markets or price adjustments.

These factors indicate that German SMEs in these sectors are facing significant challenges due to US tariffs, impacting their competitiveness and leading to increased operational costs.

Germany
Frankfurt am Main
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DZ Bank AG
SMEs
European Union
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Machinery
Automotive
Commerzbank

Vocational training programs in EC countries, particularly within the metal, automotive, and machinery sectors, could potentialy see an increased demand due to the concerns of SMEs in Germany over the indirect impacts of US tariffs.
Despite the concerns of German SMEs, a decrease in tariffs between the US and the European Union could lead to a lessening of the impact on these businesses and potentially their need for vocational training programs.
Premature implementation of counter-tariffs from the EU could prove more detrimental to the financial stability of German SMEs in the metal, automotive, and machinery sectors, necessitating increased vocational training to adapt to new business environments.
A significant portion of businesses in the metal, automotive, and machinery sectors in Germany, which form part of the backbone of their respective industries, could struggle to remain competitive and financially sound as a result of US tariffs, potentially requiring the implementation of vocational training programs to aid in their recovery.