Closer EU UK trade bonds are the best relief from ‘tariff fatigue’ for German businesses
The best way for German businesses to cope with ‘tariff fatigue’ may be to redouble efforts to expand work with existing and reliable trading partners like the UK, say leading audit, tax and business advisory firm, Blick Rothenberg.
Nils Schmidt-Soltau, a partner at the firm, said: “’Tariff fatigue’ is settling in for German businesses after a barrage of announcements from US president, Donald Trump, including his latest 30% tariffs. The only certainty for EU and UK businesses right now is that no assumptions about long-term US tariff policy can be made. But strengthening UK EU trade agreements could provide some relief for German businesses who are tired of ever-changing US tariffs.”
He added: “For Europe, and therefore Germany, to remain competitive, long-term investment is needed which requires confidence in the long-term stability of the business environment. Creating strong trade ties with the UK will give German businesses some of the certainty they are desperate for. UK businesses who have an interest in trading further with Germany, and therefore the EU, should lobby the UK government to further ease restrictions on the movement of goods and people between the UK and EU.”
Nils said: “In German “Planungssicherheit”, describes the notion of having sufficient visibility of likely future developments to be able to devise and execute plans. But until such time that the current cycle of tariff announcements and subsequent removal or material reduction of such tariffs has come to an end, no major decisions about US trade should be made by German businesses on the basis of these latest announcements.”
He added: “However, overall market reactions to the tariff announcements are becoming more muted as market participants are becoming more sceptical that tariffs will actually be implemented. It was reported last week that market reactions to the 200% pharma tariff threat were subdued.”