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German Mittelstand Pulls Back From U.S. as DZ Bank Survey Shows Sharp Drop in Interest

Planning uncertainty from shifting U.S. trade policy is pushing German SMEs to shorten supply chains.

Overview

  • A DZ Bank poll of roughly 1,000 firms shows net interest in U.S. supply‑chain engagement at minus ten points, with 9% expecting a larger role and 19% a smaller one.
  • About half of companies plan to move sourcing and sales closer to home, prioritizing Germany and European partners as they diversify away from single large markets.
  • India is gaining appeal for new links while the United States and China register declining attractiveness for many medium-sized companies.
  • Only 12% report direct hits from U.S. tariffs, yet 44% in the autumn survey—down from 50% in the spring—felt indirect effects through pricier inputs or weaker customer demand.
  • Planning certainty remains strained, with 23% flagging it as a problem and exposure concentrated in electrical, automotive/metals/machinery, and chemical industries, while IW Köln notes a roughly 45% drop in German direct investment in the U.S. early in Trump’s term to €10.2 billion.