Consultation on draft directive addressing radiation safety for workers, involving the Commission's input.
Lower Saxony Companies Brace for Economic Impact of EU-US Trade Deal
Lower Saxony companies are expressing concerns over the economic impact of the newly implemented 15% tariffs in the EU-US trade deal, which many industry groups view as potentially threatening the existence of businesses. The automotive and chemical sectors, in particular, face considerable pressure from these tariffs, which increase production costs and reduce competitiveness in the US market.
The trade agreement, which was originally set to commence on August 1 but was postponed to August 7, has already had a significant impact on companies like Volkswagen, headquartered in Lower Saxony. The automaker reported a 36.3% decrease in profits for the second quarter of 2025, attributing this decline to U.S. tariffs, increased production expenses, and market challenges such as declining sales in China.
Industry associations, including the BDI federation and the chemical trade association VCI, have expressed strong opposition to the tariffs, calling them a "fatal signal" and an "existential threat." They argue that the tariffs are damaging to transatlantic economic relations and may negatively impact future investments.
According to a survey conducted by the Chamber of Industry and Commerce (IHK) Hannover of 122 export-oriented companies in Lower Saxony, more than 70% of the businesses expect additional burdens due to the trade agreement. Specifically, nearly 90% of the surveyed companies plan to pass on the tariff costs to their US customers, either fully or partially. Around 60% of the companies plan to pass on the costs directly, and a further 27% plan to do so at least partially.
Mirko-Daniel Hoppe, deputy CEO of IHK Hannover, stated that the trade deal is exacting its toll and is connected with a higher additional burden for many export companies in the region. Hoppe emphasized the need for businesses to have sufficient planning security, as it is not yet guaranteed that the tariff compromise will hold.
Tire manufacturer Continental from Hannover has announced that it wants to produce more in the US due to the tariffs, as some of the tires sold there have been imported from Europe. The EU Commission is expected to continue negotiating in the coming weeks, focusing on reliability and economic improvements in a freer transatlantic trade.
These concerns illustrate the broader challenge Lower Saxony faces within the current trade environment with the US under this agreement. Among companies with direct US business, as many as 90% expect negative impacts. The sectors most affected by the tariffs, according to the survey, are mechanical engineering, metal industry, chemistry and plastics, electronics, and the automotive industry.
The trade deal between the EU and the US is causing concern for many companies in Lower Saxony, with many fearing that the high tariffs will harm export competitiveness and risk business stability. The agreement provides for a tariff rate of 15% for most EU imports into the US, a relief that is still seen as insufficient by many in the industry, who warn of negative repercussions for economic relations and future investments.
- Businesses in Lower Saxony's automotive and chemical sectors, such as Volkswagen and Continental, are apprehensive about the economic impact of the EU-US trade deal, as the 15% tariffs may escalate production costs and diminish their competitiveness in the US market.
- The trade agreement between the EU and the US is causing alarm within Lower Saxony's finance sector, as many companies anticipate a potential decline in export competitiveness and a risk to their business stability due to the implemented high tariffs.
