Photo: dpa
The United States has temporarily suspended the introduction of increased duties on European goods for 90 days – with the exception of China. This “breathing space” should give a chance for negotiations, but German companies are already drawing up new scenarios for survival, Handelsblatt reports.
The well-known German engine manufacturer Deutz AG, which annually supplies about 30,000 units to the United States, has warned that if Donald Trump imposes a 20% tariff, the cost of production in America will increase significantly. The company’s CEO Sebastian Schulte said that customs costs would have to be passed on to customers, as it is not economically feasible to set up local production in the US.
The Cologne-based company, which also has ambitions in the defence market, is expanding its presence in the area of military contracts. Deutz is already participating in tenders to supply engines for armoured vehicles and vehicles capable of operating in extreme conditions.
The situation is similar for weighing equipment manufacturer Bizerba, which has already moved some production from China to Serbia due to Trump’s previous tariff wars. Now that Serbia is also under threat from customs, the company’s owner Andreas Kraut is considering a move to the US: “We are ready to move production in a few months if the tariffs become a reality.”
Both companies acknowledge that innovation is the only way to stay ahead in global competition. But if duties are introduced, Europe will face a large-scale reshaping of industrial chains.
