Bremen in a customs dilemma: Companies fear for the future in US trade!

Bremen in a customs dilemma: Companies fear for the future in US trade!

Bremen's economic landscape is facing challenging times as the impact of US President Donald Trump's announced tariffs on cars and other goods becomes apparent. The current uncertainty primarily affects the local industry, whose exports to the USA have increased significantly in recent years. However, according to a study by the Hamburg Institute of International Economics, which was commissioned by the Bremen Chamber of Commerce, the consequences could be less dramatic than initially feared. In this tricky situation, there remains hope for some companies, especially for the Acmos company in Bremer Neustadt, which produces release agents for various products.

The study shows that the tariffs could have a smaller long-term impact on Bremen's gross domestic product than initially appeared. A neutral overall effect is expected over a period of two years. However, it cannot be denied that the uncertainty in the current economic situation is putting a heavy burden on Bremen's companies, as the latest surveys show. Acmos managing director Julian Laschinsky emphasizes that the tariffs come at “the worst possible time” because North America is an important growth market for the company.

Growth vs. uncertainty

The import-export situation is particularly critical since over 72 percent of Bremen's exports to the USA are cars and car parts. Chamber of Commerce experts have shown that a decline of up to 15 percent in automobile exports to the USA is possible, which could have a significant impact on local businesses. The automotive industry in Bremen is particularly affected due to its strong ties to the US market. In the long term, such developments could reduce value creation in the manufacturing sector by up to 2.7 percent.

The uncertainty is also spreading among other companies. Acmos employs around 150 people in Bremen and has branches in the USA, which brings additional risks. The managing director is confident that his company can assert itself in the US market despite the difficult conditions, but also sees a need to diversify towards Asia and North America.

New markets in sight

The Bremen Chamber of Commerce emphasizes the importance of the adaptability of local companies. Many have already started to develop new supply routes and trading partners to counteract the negative effects of tariffs. Chamber of Commerce President André Grobien highlights the mixed results of the latest study: While the automotive industry is indeed in a critical state, adaptive responses and the development of new markets in South America, India and Indonesia could offer long-term opportunities. Negotiations on free trade agreements, such as the Mercosur agreement, show that there are new ways to strengthen the Bremen economy even in turbulent times.

The available data suggests that the US may be in a deep recession and ultimately bear the brunt of tariff policy. Nevertheless, it remains exciting to see how the Bremen economy responds to these challenges and what new opportunities will emerge in the future. It is up to the companies to demonstrate good skills and react flexibly to the given market situation.

For a detailed analysis of the current customs policy and its impact on Bremen's economy, we recommend taking a look at the reporting from Buten un Binnen and the assessments from Weser Kuriers.