Since March 2025, noticeable uncertainty has been observed among European industrial companies.\nThe new tariff policy of the US government under President Donald Trump confronts German companies in the automotive and mechanical engineering sectors with a multitude of challenges. With the implementation of a 25% import tariff on vehicles and vehicle components from Europe, as well as the imposition of additional tariffs on steel and aluminum, the US government is specifically targeting the EU's key industries. Consequently, a general import tariff of 10% on all other imported goods from Europe has been introduced. Exceptions apply only to countries that are able to offset trade deficits with the USA.<\/p>\n\n\n\n
The political rationale is evident: The new US administration is pursuing a reindustrialization of the country as well as a reduction of chronic trade deficits \u2014 at the expense of transatlantic economic partners. For European companies, especially those with a strong export focus, this results in significant challenges due to rising inflation, disrupted sales channels, and growing geopolitical uncertainty.<\/p>\n\n\n\n
The German automotive industry is particularly affected.\nIn 2024 alone, goods worth \u20ac44.7 billion were exported from Germany to the United States. This figure accounts for 13.1% of total German car exports. It is evident that renowned brands such as Porsche, BMW, and Mercedes-Benz generate a significant portion of their global sales in the United States. In some cases, this share amounts to more than a quarter.\n\nThe new tariffs are resulting in immediate price pressure, as manufacturers must either pass on higher costs to customers or reduce their own margins. The topic of relocating production to third countries, such as Mexico or Asia, is currently under discussion. However, it must be noted that such relocations involve investments and a certain amount of time. The VDA (German Association of the Automotive Industry) is already speaking of a \"fundamental trade policy turning point.\"<\/p>\n\n\n\n
The mechanical and plant engineering sector, another cornerstone of German industrial expertise, is also affected by the changes.\nThe United States has traditionally been the largest export market for machinery \"Made in Germany.\" Already in 2024, exports fell by 5%, mainly due to weaker demand. The implementation of new tariffs could potentially reinforce this trend.\n\nThe industry association VDMA forecasts a 2% decline in production for 2025. For many medium-sized companies with a high share of revenues from the US market, this poses a substantial threat.<\/p>\n\n\n\n
At the European level, there is an awareness of the urgency of the situation.<\/strong> <\/p>\n\n\n\n The European Commission has announced a 90-day pause in the imposition of countermeasures in order to create room for negotiations.\nAt the same time, retaliatory tariffs on US products worth up to \u20ac26 billion are being prepared. These tariffs could affect consumer goods such as motorcycles, jeans, and bourbon.\n\nIn a parallel proposal, the EU is advocating for a \"zero-for-zero\" model, which would entail the mutual elimination of all industrial goods tariffs. However, there is uncertainty regarding the success of this diplomatic approach, as the trade policy plans of the Trump administration appear to be strategically designed for the long term.<\/p>\n\n\n\n The macroeconomic consequences for the European region are already foreseeable.<\/strong> <\/p>\n\n\n\n According to forecasts by economists from the European Central Bank (ECB) and the European Commission, a potential decline in the European Union's (EU) gross domestic product (GDP) of between 0.5% and 1.0% is expected.\nIf no agreement is reached, a slowdown in growth is likely, which in turn could have impacts on investment, employment, and location decisions.<\/p>\n\n\n\n In this complex environment, many companies face the central question of how to respond to geopolitical uncertainty without losing their competitiveness. <\/strong><\/p>\n\n\n\n From a strategic perspective, it is crucial to clearly identify areas for action and implement them in a targeted manner.\nThis includes, for example, resilient supply chain management that takes alternative sales markets and delivery structures into account. Digital transformation is also becoming increasingly significant \u2014 not only to enhance process efficiency but also to accelerate responses to market changes.<\/p>\n\n\n\n For industrial SMEs, the use of experienced interim managers is particularly recommended at this stage<\/strong> to support critical transformation phases or to bridge short-term vacancies. For companies that have so far been heavily dependent on the US market, it is advisable to review their sales strategies and analyze potential diversification markets.<\/p>\n\n\n\n How IMIG Can Help<\/strong><\/p>\n\n\n\n IMIG GmbH supports companies in exactly these situations \u2014 with tailored solutions that combine strategy and execution.<\/strong>\nOur experience from projects in the automotive and supplier industries as well as in mechanical and plant engineering makes us a reliable partner in times of geopolitical change. Whether it's about more resilient supply networks, strategic location decisions, or the operational implementation of transformation programs \u2014 we develop practical concepts and actively support their execution.<\/p>\n\n\n\n