The BDSI German confectionery industry trade body has expressed concerns over US tariffs that it says are having a considerable negative impact on its exports to the region, writes Neill Barston.
Significantly, the organisation said that an escalation of a global trade war had now been averted in the wake of America confirming tariff rates of 15% for the EU – which were 5% above the rate agreed recently with the UK.
As the BDSI noted, German policymakers must help create a competitive business environment in the wake of the tariff decision, with around 5% of its exports going to the US.
Germany, as with other EU states was hit with 15% tariffs, while neighbouring Switzerland has been affected even more, with the US imposing punishing tariff levels of over 30%, which has caused major concern.
For its part, the BDSI said that the comprehensive increase in import tariffs on almost all product categories, which was decided by the US government and has now come into force, is hitting the German confectionery industry hard.
The German Confectionery Industry Association (BDSI) nevertheless recognises the political tariff and trade agreement between the EU Commission and the US as an important step towards de-escalating transatlantic trade.
Nevertheless, the situation for the confectionery industry remains tense. The new flat tariff rate of 15% represents a significant burden for the export-oriented German confectionery industry.
Around 5% of the industry’s exports go to the United States and are now affected by the significant price increases caused by the US tariffs. Based on the agreement in principle reached, talks with the US must now begin for permanent liberalisation.
Dr. Carsten Bernoth, Executive Director of the BDSI commented: “US exports are becoming a major challenge. Once again, the urgent political need to strengthen the international competitiveness of companies manufacturing in Germany is becoming apparent.
“The initial focus must be on competitive electricity and energy prices for all manufacturing sectors, as well as on reducing excessive bureaucracy,” “If the framework conditions are right, the challenges facing US business can be resolved.”