Red alarm level: Export economy in BW sees the dark future through US tariffs!

Red alarm level: Export economy in BW sees the dark future through US tariffs!

Baden-Württemberg, Deutschland - The Baden-Württemberg export industry sees itself exposed to significant challenges due to the current US customs policy. A survey of the Chamber of Industry and Commerce Region Stuttgart (IHK) shows that half of the exporting businesses in the next 12 months Exports into the United States. These developments ensure noticeable uncertainty in the industry.

Around 61 percent of companies expect the higher costs to be passed on to consumers due to tariffs. In addition, every sixth company expects a falling profit margin. IHK boss Claus Paal described the situation as a "alarm signal" for the export-oriented economy. In 2024, Baden-Württemberg exported were worth 34.8 billion euros to the United States, which represents a decline of 4.4 percent compared to the previous year. Without a political change of course, the economy in the southwest threatens immense economic risk.

trade conflict and production deposits

The continuing trade conflicts between the USA and Europe, intensified by the announcement of new tariffs by US President Donald Trump, have continued to escalate the situation. On Wednesday, Trump declared 25 percent in customs to foreign cars, which in particular affects the Baden-Württemberg automotive industry. For many companies, this is another reason to move their production capacities to the United States. Every tenth industrial company indicates that it wants to move parts of the production to existing US locations.

The effects of the tariffs are already noticeable. In addition to motor vehicles and parts that made up for around 27 percent of exports, machines and pharmaceutical products also play a major role. These sectors are crucial for the country's export industry and have had a significant part in trade relationships with the USA in the past.

political reactions and European answers

Prime Minister Winfried Kretschmann expressed concern about the negative effects of the tariffs and emphasized the need for a rapid negotiating solution. His government is committed to expanding free trade and for a strong European position in discussions with the USA. "The US tariffs attack international trade and endanger prosperity," said Kretschmann, while other ministers invited business associations and chambers to exchange ideas.

representatives from various industries warn of the damage that can bring about customs conflicts. Thomas Strobl, another minister, called for European sovereignty in the trade in order to be able to react better to such challenges. The state government and the economy focus on a coordinated EU to mitigate the negative effects of US customs policy and to promote free trade. In a top conversation, a joint positioning against punitive tariffs was agreed.

In order to promote the dialogue between the economic actors, an exchange about possible measures to stabilize internal demand was also proposed. The trade association called for the negative effects of tariffs to cushion through targeted investments and an active industrial policy.

Wherever the trip for the Baden-Württemberg export industry is uncertain. However, it is clear that the entrepreneurs and politics have to find a common way to master the challenges of the changing trade landscape and to secure prosperity in the region. According to the state government , close cooperation with European partners is essential in this situation.