The mood among German exporters darkened in June due to uncertainty regarding U.S. tariffs, according to a survey conducted by the Ifo economic institute.
The institute’s index for export expectations dropped to -3.9 from -3.0 in May.
“The tariff threats from the U.S. are still on the table. An agreement between the EU and the U.S. has yet to be reached,” Klaus Wohlrabe, head of Ifo surveys, said in a statement. “This uncertainty is lowering exporters’ expectations.”
President Donald Trump has announced wide-ranging tariffs on trade partners and wants to reduce the U.S. goods trade deficit with the European Union.
The trade barriers have alarmed German industry, including carmakers, who worry about the impact on their crucial export business.
The two sides are in talks in a bid to reach a deal, but European officials are increasingly resigned to a 10% rate on “reciprocal” tariffs being the baseline in any agreement, five sources familiar with the negotiations told Reuters last week.
(Reporting by Rachel More)
