German Industry Faces Uncertainty Over Potential Trump Victory

A significant portion of German industrial companies express unease about the prospect of a Donald Trump election victory. According to an Ifo survey, 44% of these firms fear potential negative impacts, primarily due to Trump's protectionist trade policies. Exports to the USA are crucial for these companies, with the automotive sector particularly at risk due to its substantial vehicle exports. However, imports from the USA hold less significance, with only 11% of companies seeing them as vital.

Financial experts suggest that a Kamala Harris victory might offer a more favorable economic climate. Despite these concerns, only a small fraction of companies, about 4%, are planning measures such as production relocation or supply chain adjustments.

The looming threat of tariffs and a potential trade war could cost Germany up to 180 billion euros, significantly affecting the country's GDP. The majority of companies seem to rely on wishful thinking regarding the election outcomes, anticipating a close result without taking substantial preemptive actions. The broader European economy might also experience repercussions, with potential declines in growth rates if trade tensions escalate.