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Small to Medium Enterprises (SMEs) in Germany express their worries over potential indirect impacts from US tariffs

American Middle-Sized Corporations Worry Mainly about Secondary Effects from US Import Tariffs

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Shipped Container Holds Cargo at Transit Warehouse in Frankfurt am Main
Shipped Container Holds Cargo at Transit Warehouse in Frankfurt am Main

Small and Medium Enterprises (SMEs) in Germany Worry More About Indirect Fallouts of US Tariffs

German Medium-Sized Businesses Worry Mainly About Secondary Effects of US Tariffs - Small to Medium Enterprises (SMEs) in Germany express their worries over potential indirect impacts from US tariffs

American tariffs could have serious repercussions for German businesses, particularly in the metal, automotive, and machinery sectors, most specifically due to indirect consequences. According to analysts at DZ Bank, these companies anticipate that their trading partners' business will be negatively impacted by US tariffs, which will in turn hurt their own operations. Approximately two-thirds of companies in these sectors are concerned about such indirect effects.

A survey of 1,000 owners and managers of German SMEs, conducted between March 6 and 26, indicates that while 29% of companies aren't worried about US tariffs, potential counter-tariffs by the EU might hit them harder. 29% expect direct consequences such as higher purchase prices, while 19% expect no negative effects.

Claus Niegsch, DZ Bank analyst, believes that the concern about rising costs could be premature, as goods originally destined for the American market could wind up in Europe, resulting in lower prices here.

As US import tariffs hit record highs (25.5% in early 2025, expected to drop to 10.2% by year-end), German SMEs may have to restructure their supply chains, increase costs, and deal with more complexities, especially smaller firms with less flexibility. Furthermore, the ongoing trade war and the resulting market uncertainty could lead to a reduction in global export values by approximately $480 billion in 2025, impacting revenue and profitability for these export-oriented sectors.

The U.S. tariff regime has sparked retaliatory actions by major trading partners, such as the EU and China, potentially limiting access to these markets for German SMEs. Additionally, increased administrative and regulatory burdens are adding to their challenges, as governments impose stricter VAT rules and new omnibus and sustainability reporting regulations require more data and risk assessments.

In essence, U.S. tariffs and the broader global trade environment could result in increased costs, market access barriers, regulatory complications, and sustainability pressures for German SMEs in these key sectors.

  • Germany
  • DZ Bank AG
  • USA
  • SMEs
  • EU
  • Frankfurt am Main
  • Metal
  • Machinery

Enrichment Data Summary:- German SMEs in metal, automotive, and machinery sectors expect significant indirect consequences due to U.S. tariffs, including supply chain reorganization, market access barriers, administrative burdens, and sustainability pressures.- New omnibus and sustainability reporting rules could pile more data, risk assessments, and reporting needs on SMEs, adding another layer of indirect pressure.- Market uncertainty, reduced export values, and retaliatory measures might impact revenues and profitability for these sectors.

  1. DZ Bank AG in Frankfurt am Main has voiced concerns about the indirect repercussions of US tariffs on Small and Medium Enterprises (SMEs) in Germany, particularly those in the metal, automotive, and machinery sectors.
  2. These German SMEs anticipate that they may have to restructure their supply chains due to US tariffs, potentially leading to increased costs and more complexities, especially for smaller firms with less flexibility.
  3. The ongoing global trade environment, influenced by US tariffs, could limit the market access for these German SMEs, as major trading partners like the EU and China might retaliate.
  4. In addition to the trade complications, new omnibus and sustainability reporting regulations could burden German SMEs with more data, risk assessments, and reporting needs.
  5. According to analysts, the US tariff regime could result in a drop in global export values by approximately $480 billion in 2025, potentially impacting revenues and profitability for these export-oriented sectors in EU countries like Germany.

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