German business community collectively criticizes US tariff flip-flopping; Treier bluntly states that unpredictable policy destroys stable business environment

(1) Two of Germany's top business associations—the Association of German Chambers of Commerce and Industry and the German Wholesale and Foreign Trade Association—both issued statements on the 24th local time, sharply criticizing the United States for its recent frequent adjustments to tariff measures, stating that these abrupt policy changes are seriously disrupting corporate investment decisions and supply chain arrangements. (2) Volker Treier, Head of Foreign Trade at the Association of German Chambers of Commerce and Industry, pointed out that the U.S. is attempting to use new legal grounds to reinstate tariff measures that had previously been halted by the courts. He stated that such policy reversals not only increase the administrative and compliance burden on companies, but also introduce ongoing legal risks, making it difficult for exporters to develop medium- and long-term business strategies within a stable framework. (3) Treier explicitly demanded that the U.S. fully abolish tariff measures that violate World Trade Organization rules, especially the additional tariffs on steel and aluminum products that are still in force, and stressed that no unilateral trade measures should override the multilateral rules-based system. (4) From a market perspective, as the largest export economy in Europe, the collective protest from German industry reflects the growing friction costs accumulating along the transatlantic trade corridor. If U.S. tariff policy continues with high-frequency adjustments, order visibility for eurozone manufacturing will further deteriorate, thereby dragging down investment confidence and employment growth. (5) Going forward, close attention should be paid to whether the European Union will relaunch dispute settlement proceedings against the U.S. over steel and aluminum tariffs, as well as whether the German federal government will adopt reciprocal countermeasures or compensation measures at the bilateral level. These variables will directly impact the pricing power and market share of European industrial exports.