German companies are today facing trade barriers that they have not encountered since the financial crisis of 2008, a survey conducted by the German Chambers of Industry and Commerce (DIHK) revealed on Friday.
Approximately 40 percent of the 2,100 companies that participated in the 2018 survey reported facing greater obstacles in foreign business over the past 12 months.
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In last year’s survey, 31 percent expressed a similar assessment.
The survey was conducted in February, before U.S. President Donald Trump imposed tariffs on steel and aluminum imports and proposed tariffs on Chinese goods, to which China responded with announcements of corresponding measures on a range of U.S. products.
Among the main obstacles in business, German companies highlighted strict regulations for issuing certificates and safety requirements, as well as higher tariffs.
Despite the increased barriers, a quarter of companies expect an improvement in business as the global economy remains on an upward trajectory thanks to recovery in the Eurozone, North America, and many Asian countries.
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Only one in ten companies expects deterioration, the survey showed.
The greatest obstacles are encountered in Russia, the Middle East, North Africa, Turkey, and China, according to the latest DIHK survey results.
The current trade dispute between China and the U.S. is also dampening forecasts for German exports, which are already showing certain weaknesses, having recorded the largest monthly decline in over two years in February, Reuters reminds us.
DIHK notes that, alongside Trump’s animosity towards free trade, the uncertainty surrounding the expected exit of the United Kingdom from the EU continuously creates challenges for German companies.
