Customs alert! Trump threatens German companies with penalties of up to 20%

Customs alert! Trump threatens German companies with penalties of up to 20%

On July 11, 2025, the White House sends letters to various trading partners announcing the introduction of special tariffs. While the EU has not yet received a letter, countries such as Japan, Thailand, Brazil and Canada are already affected. US President Donald Trump has indicated that the EU will face punitive tariffs of up to 20 percent. These announcements cast a shadow over German-American trade relations.

The German economy is particularly badly affected by developments on the American market, which is of outstanding importance for Germany with a trading volume of around 253 billion euros in 2024. Despite the uncertainties, many German companies are optimistic and continue to believe in the US market. Susanne Herre, general manager of the IHK Stuttgart, has noticed in conversations with German companies that they are firmly committed to their business in the USA.

Companies and their challenges

According to reports from company representatives, large companies such as BASF, Trumpf and Würth consider the US market to be attractive despite the current uncertainties. Lauda's managing director, Marc Stricker, also emphasizes the importance of the North American market for the growth of his company. Nevertheless, there are challenges: Lauda has been faced with a basic tariff of 10 percent on exports to the USA since April, which has had a significant impact on sales.

Marius Westermann, managing director of SensoPart, has reported high sales losses on the US market since January. A central need for companies is planning security in order to generate new orders. SensoPart also cannot relocate its production to the USA because the sensors required for the market have to be manufactured in Germany. Until there is clarity about tariff policy, investments in the USA will be put on hold.

Current customs announcements and negotiations

In another development, Trump has announced that he will increase tariffs on copper to up to 50 percent and even promised tariffs of up to 200 percent on pharmaceutical products. However, the date of entry into force remains unclear. In early July, an increase in higher tariff rates was originally scheduled for July 9, but was postponed to August 1 to give negotiators more time to reach agreements.

The EU and the USA had expressed optimism that they would reach an agreement by July 9th, otherwise expanded tariffs of up to 50 percent would have come into force. The focus is also on negotiations on non-tariff barriers, with the aim of promoting cooperation in areas such as LNG imports and AI technologies. The EU has also called for tariff cuts in strategic areas such as pharmaceuticals and semiconductors and is pushing for exemptions for affected sectors such as automobiles and steel.

In recent months there have been repeated legal disputes over Trump's powers with regard to tariff increases. In early June, a US federal court ruled that Trump exceeded his authorized powers, but that decision has been temporarily overruled and the legal process will have to continue in the coming months.

The future development of trade relations between the USA and Germany remains unexpected as tariff policy continues to cause uncertainty.