German companies prefer not to produce in the USA

RP ONLINE German companies prefer not to produce in the USA 1 hour • 2 minutes reading time Berlin. In his tariff announcements, Donald Trump is calling on foreign companies to relocate their factories to the USA. The US President can expect little interest from German managers. 21 percent of respondents in a survey by the auditing and management consulting firm KPMG said they plan to build new production facilities in the USA, as KPMG announced in Munich on Monday evening. But at the same time, 19 percent are considering withdrawing. "The lack of predictability of US politics is the biggest obstacle to investment for many companies," said KPMG expert Andreas Glunz. Location decisions are always made with a view to decades ahead. 69 percent of managers surveyed complain about the unpredictability of US politics Trump wants to lure companies to the USA with lower taxes, less regulation, and high tariffs. He announced special tariffs against almost all trading partners, some of which were then reversed or frozen. KPMG surveyed 166 senior managers of German companies with business activities in the US from the end of February to the end of March about the new US economic policy. 44 percent of the companies stated that they expected benefits for their business from tax cuts. Other advantages include cheap energy and fewer government regulations. However, 69 percent also complained about the unpredictability of US policy, and 49 percent complained about the new US tariffs. 37 percent fear tax increases targeted at foreign companies. Companies are more likely to leave the US than China One consequence of US policy is that numerous German companies are looking for alternatives – in South America, Eastern Europe, Asia, or Africa. Only four percent of German companies are planning to exit China because of the new US economic policy, which is sharply directed against the People's Republic. Withdrawal from the US is more likely to be considered.<