German manufacturers and alcohol producers could benefit from closer economic ties to the UK
German businesses who manufacture in the UK and German alcohol producers could both benefit from closer economic ties with the UK in response to US president Donald Trump’s ‘Liberation Day’ tariffs, say leading audit, tax and business advisory firm, Blick Rothenberg.
Nils Schmidt-Soltau, head of German desk at the firm, said: “The lower tariff on UK imports could be regarded as a silver lining for German businesses with a manufacturing presence in the UK, given the lower tariff rate of 10% announced for imports from the UK compared to the 20% rate on imports from the European Union.”
He added: “Germany could also seek to increase its alcohol exports to the UK. Germany is the third biggest exporter of wine in the EU. It exports around 1 Million Hectoliter of wine and the US is its biggest export market. It is also the EU’s fourth biggest beer exporter and the US is a very important market for German brewers. But Donald Trump’s announced beer and wine tariffs and the ‘Liberation Day’ tariffs announced last night could cause that market to dry up quickly.”
Nils said: “Although currently German wine and beer exports to the UK are relatively low, the UK is the second biggest wine importer worldwide after the US. Overall Germany was also the UK’s largest import partner in 2023. German alcohol producers could seize the opportunity to expand their operations in the UK.”
He added: “However, the German automobile industry will not be benefiting from the UK’s lower tariff rate with Volkswagen owned Bentley and BMW owned Rolls Royce and Mini all being subject to the general tariff of 25% on automobile imports.”