German Exporters Sentiment Takes Hit from U.S. Tariff Threats: Ifo Survey
BERLIN (Reuters) - The mood among German exporters has darkened in June due to uncertainty regarding U.S. tariffs, according to a survey conducted by the Ifo economic institute. The institute's index for export expectations dropped to -3.9 from -3.0 in May, indicating that German exporters are becoming increasingly concerned about the potential impact of U.S. tariffs on their business.
"The tariff threats from the U.S. are still on the table. An agreement between the EU and the U.S. has yet to be reached," said Klaus Wohlrabe, head of Ifo surveys, in a statement. "This uncertainty is lowering exporters' expectations."
President Donald Trump has announced wide-ranging tariffs on trade partners and is seeking to reduce the U.S. goods trade deficit with the European Union. The trade barriers have alarmed German industry, including carmakers, who are worried about the impact on their crucial export business.
The two sides are in talks in an attempt to reach a deal, but European officials are increasingly resigned to a 10% rate on "reciprocal" tariffs being the baseline in any agreement, according to five sources familiar with the negotiations who spoke to Reuters last week.
The recent U.S.'s tariff threats have significantly dampened the sentiment of German exporters, as evidenced by aoe-survey conducted from Ifo indicating declining confidence levels.
The Ifo Survey reveals that German exporters are feeling the brunt of U.S.'s tariff threats, indicating a potential downturn in trade relations and negative implications for both economies' growth.
The threat of US tariffs casts a dark cloud over the sentiment of German exporters, as evidenced by recent Ifo survey results indicating lowered confidence and dimmed expectations for export-driven businesses.
The latest Ifo Survey highlights that German exporters are facing a major setback due to the US's tariffs threats, underscoring growing economic tensions between two of Europe and North America’s largest economies.
The Ifo survey reveals that American tariff threats have significantly affected the sentiments of German exporters, casting a shadow over their future business prospects.
