German exporters brace for tariffs as export expectations rise

In Germany, the mood within the export industry showed a slight improvement as of November. This change in sentiment was reported following a survey conducted by the Ifo Institute for Economic Research, which is located in Munich. The report indicated that the indicator for export expectations experienced an increase from minus 6.5 points in October to minus 5.9 points in November, marking the first upward movement in six months. Despite this positive shift, many companies remain unsettled about future foreign business developments, particularly in light of the changing trade policies expected under U.S. President-elect Donald Trump. The apprehension stems from Trump's campaign rhetoric promising significant tariff increases on imports from various countries including Canada, Mexico, China, and potentially the European Union. As companies assess the potential impacts of these tariffs, some analysts predict that German exports to the United States may temporarily rise. Many U.S. businesses are expected to place orders for goods from Germany before tariffs lead to increased costs. Additionally, the article mentions that the dollar has appreciated strongly since the U.S. election, further influencing the dynamics of trade and benefiting German exporters. Overall, while the export mood has improved slightly, uncertainty remains pervasive amid impending U.S. trade policy changes.