Flash Survey Industrial Companies in the North Turn Away from the USA

Source: dpa 2 min Reading Time

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As a result of the protectionist US trade policy, industrial companies in northern Germany are trying to reduce their dependence on the USA.

Northern German industrial companies' confidence in relations with the USA is waning.(Image: ChatGPT)
Northern German industrial companies' confidence in relations with the USA is waning.
(Image: ChatGPT)

The results of a snap survey conducted by the industrial employers' associations Nordmetall and AGV Nord show that more than one in four companies say they want to reduce their dependence on the USA for digital infrastructure. For example, companies are looking for other providers of software and AI applications.

Trust in Relations With the USA is Waning

"Every trade conflict with the USA also hits the North German economy hard, and trust in the relationship that has grown over the past hundred years is steadily eroding," said Nordmetall's Managing Director, Nico Fickinger, according to the press release.

According to Fickinger's observations, companies are increasingly turning their backs on the USA and focusing on other markets.

That is why not only the EU trade agreement with India is so important, but also why the agreement with Mercosur must no longer be politically torpedoed.

Nico Fickinger, Nordmetall CEO

The Mercosur deal was signed in Paraguay at the beginning of the year after more than 25 years of negotiations. The aim is to create a new free trade zone with more than 700 million inhabitants. However, the agreement has not yet come into force. In January, the European Parliament decided to have the agreement reviewed.

Search for Other Export Destinations

The survey of the associations also shows that almost one in four companies is reorganizing its export efforts. The aim is to develop export destinations other than the USA.

And almost one in five companies are working on reorganizing their supply chains to avoid having to source intermediate products from the USA.

Not all companies are turning away from the USA. Some are bucking the trend and intensifying their cooperation: six percent of companies state that they are setting up their own production site in the USA. Such an approach can serve to circumvent import duties.

Almost 150 Companies Took Part

According to the information provided, 147 member companies of the associations took part in the survey. The survey began on January 26 and ended on February 4. Management and personnel managers were contacted.

Nordmetall and AGV Nord say they unite around 700 member companies with more than 180,000 employees in Schleswig-Holstein, Hamburg, Mecklenburg-Western Pomerania, Bremen (Germany) and north-western Lower Saxony.

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