January 24, 2017
German-American economic relations – boom or bust under Trump?
It is yet unknown how policy and actions of Donald J. Trump, 45th President of the United States of America, will affect the traditionally strong ties between Germany, Europe and the USA.
International trade and trade agreements
US President Donald Trump made abandoning the Trans-Pacific Partnership agreement (TPP) a key part of his election campaign. On his first day in office, he followed through with this promise. Should he decide to renegotiate the North American Free Trade Agreement (NAFTA) – which he has vowed to do – it could also affect the ratification process of the recently concluded Comprehensive Economic and Trade Agreement (CETA) between the European Union and Canada.
The United States is the number one export market for both Germany and the State of Bavaria. Therefore, the Bavarian Industry Association is particularly interested in resuming the negotiations on the Transatlantic Trade and Investment Partnership (TTIP).
The United States’ Russia policy will test Germany’s and Europe’s position on continued sanctions against Russia and the resolution of the Ukrainian crises. Furthermore, Trump’s policy on Iran could have an economic impact on Germany’s industry which is poised to rekindle traditional relations with Iran.
Immigration reform and infrastructure development
On the one hand: restrains on immigration would affect German companies and entrepreneurs doing business in the United States. On the other hand: if President Trump keeps his campaign promise of spending on infrastructure projects, it could provide an indirect, if not a direct benefit to German companies in the United States.