Stand: November 6, 2024, 1:58 p.m
Von: Theodora Billich
PressSplit
Donald Trump’s US presidency could be fatal for companies in Baden-Württemberg. Increasing import tariffs would particularly hit the export economy hard.
The USA is the most important trading partner for Baden-Württemberg. Companies in the Southwest export goods worth billions of euros to the United States every year. The automotive industry, mechanical engineering companies and the pharmaceutical industry are particularly dependent on this market. Donald Trump, however, is pursuing a protectionist trade policy aimed at protecting the US economy by increasing tariffs on imported goods and encouraging domestic production.
That’s why Trump’s trade policy threatens the economy in Baden-Württemberg
The economy in Baden-Württemberg is confronted with massive problems. Many companies in the region are sliding ever deeper into the crisis. The automotive supplier iwis mechatronics in Schwaigern recently had to file for bankruptcy. The election of Donald Trump as US President could further worsen the economic situation. He plans to massively increase tariffs on all imports into the USA.
The increase in tariffs would not only drive up the prices of Baden-Württemberg goods in the USA, but would also endanger sales of these products. Customers in the USA would probably increasingly switch to domestic alternatives that are duty-free and therefore cheaper. This could lead to a significant decline in exports. The automotive and mechanical engineering industries, which have strong sales markets in the USA, would be particularly affected.
Foreign companies should produce in the USA
Trump wants to encourage foreign companies to produce in the United States by offering low energy prices and tax breaks as incentives. This might initially seem attractive to companies in Baden-Württemberg because it would allow them to avoid customs duties and benefit from the discounts. However, this strategy also entails enormous risks for the domestic economy.
A shift in production capacity to the US could result in numerous job losses in the region. The long-term risks of the Trump presidency are also significant: his policies could even slow down global economic growth because they restrict international trade relations. In the long term, this would also destabilize financial markets worldwide.
IHK President reacts to the US election – the EU and the new US government must work together
In a statement on the outcome of the US presidential election, IHK President Manfred Schnabel emphasized that Berlin, Brussels and the new US government must quickly establish “a sustainable and resilient working relationship”. Schnabel sees the rising tariffs as a challenge and calls for an appropriate response from the EU. In the long term, this would have to consider a free trade agreement with the USA, even if this currently seems unrealistic.
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Schnabel also emphasizes that the EU must prepare for a bilateral agreement with the United States. Nevertheless, it remains important that the EU continues to support “rules-based global trade”. Despite these tensions, the USA remains important for the Western community of values and security policy. Since the pressure on German politics is now increasing due to Trump’s presidency, it is even more important to ensure that the German economy recovers.
