Half -year balance
Mechanical engineering exports suffer from a customs conflict
The struggle for the US tariffs does not pass the German mechanical engineering industry without a trace. But the companies are looking for ways out.
Export-oriented machine and plant engineering in Germany suffers from global customs conflicts. In the first half of the year, goods worth 98.3 billion euros were exported – a decrease of 3.4 percent compared to the same period in the previous year. The minus is even 4.9 percent adjusted by price, as the VDMA industry association reports.
According to the association, the second quarter was strongly shaped by the customs conflict with the most important trading partner USA. Repeated customs threats from US President Donald Trump and the uncertainty about the final result would have put a significant impact on the business. Exports to the USA decreased by 9.5 percent compared to the same period last year. Chief economist Johannes Gernhardt expects negative effects of the conflict in the third quarter due to the continuing uncertainties.
Looking for new sales markets
The companies are struggling for new sales markets. However, exports to European countries also gave in by 3.7 percent in the half year. “However, the increase in order incoming over the past few months from the Euro partner countries hope for a positive development of exports in this important sales region,” says the VDMA chief economist. However, there were more business with South American countries and in the Middle East.
dpa
Source: Stern
