Close to 60% of German companies expect that a trade deal agreed between the European Union and the U.S. would create more burdens for them through higher tariffs and more bureaucracy, a survey said Wednesday.
That number rises to 74% for companies with a direct U.S. business, according to a flash survey by the German Chamber of Commerce and Industry (DIHK) of around 3,500 firms.
In contrast, 37% do not foresee any effect, while only 5% expect economic relief as a result of the deal that will provide for 15% tariffs on most EU goods starting Thursday.
"This agreement may have been politically necessary, but for many companies in Germany, it is still a bitter pill to swallow," said DIHK chief executive Helena Melnikov.
Even more problematic is lingering uncertainty on whether the agreement will hold, said Melnikov, urging the EU Commission to push for improvements in further talks with the U.S.
Approximately 80% of companies with direct U.S. business reported that their primary concern is the introduction of new tariffs, with nine out of 10 already experiencing the negative effects of the current policy.
Almost two-thirds of German companies are turning their attention to new markets as a result, with the European single market in particular seen as stable and predictable.
