Fraser Hammond - U.S. Companies Optimistic About German Business Prospects
Fraser Hammond says Germany is viewed by the United States as a highly valuable location for business and investment.
TAIPEI CITY, Taiwan, April 25, 2018 (Newswire.com) - Fraser Hammond economists say, according to a recent survey, that the vast majority of US companies with a presence in Germany anticipate that profit margins will increase in 2018. This sentiment is in spite of the growing tensions over US President Donald Trump’s decision to implement punitive import duties on metals imports.
Fraser Hammond economists say the survey revealed that more than 50 percent of US businesses operating within Germany are looking to employ additional staff and spend more on expansion.
In March, Trump caused a worldwide uproar when he announced the tariffs of 25 percent on steel and 10 percent on aluminum. Later, he decided to temporarily exempt Germany and the rest of the European Union from the import duties, giving them until the first of next month to negotiate a trade deal with the United States.
Fraser Hammond analysts say the European Union and other US allies are concerned that the import duties will restrict the volume of goods entering the United States. They also believe that metals prevented from entering the US could return to the countries of origin and cause a glut.
Fraser Hammond economists say that while 61 percent of US companies with a presence in Germany are hoping to expand their activities there over the course of the next four years, German companies are also upbeat about business prospects with the majority of companies anticipating an increase in revenues.
Fraser Hammond economists believe the results of the survey indicate that both the US and Germany are regarded as valuable locations for business and investment.
Source: Fraser Hammond