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  • 5 months ago
German automotive suppliers are facing mounting pressure as the US imposes steep tariffs on EU steel and aluminium. Industry leaders call for new trade agreements to reduce dependency on the volatile US market,
Transcript
00:01It's not easy to stay on top of every detail.
00:04But they have to here as suppliers for the auto industry.
00:08The situation in the US, their biggest export market, is fluid.
00:12Tariffs are on everyone's mind, and a reliable deal isn't in sight.
00:17They've become used to the ups and downs every day brings.
00:25Over the past months, ever since the new US administration came in,
00:29we've experienced a steady stream of new rules and regulation.
00:32That's poison for our business.
00:34We need a reliable framework.
00:36Our industry can adapt to a variety of scenarios.
00:39We have some flexibility, but we can't deal with an ever-changing situation.
00:44But that's exactly what they got.
00:47With the US levying tariffs on hundreds of EU steel and aluminium products.
00:52Tariffs of up to 50%.
00:55The Thiel & Hoche company is a specialist for tube-based components.
01:03The tariffs have irritated them.
01:06This uncertainty means that we have to be careful about investing.
01:12We're hesitant to trust the order outlook that we're getting from our customers in the US.
01:17Now some companies are cutting domestic investment.
01:22Others are expanding abroad.
01:25Like the Rebs company, a specialist for lubrication technology.
01:29The family-owned business employs 320 and has dealerships in the US as well.
01:36We're considering moving some of our production to the US.
01:45We've actually started preparing for it.
01:48We have an affiliate in Canada, close to the US border,
01:51and we would be able to utilize those employees in the US as well.
01:55The tariffs spat with the US, only one of many problems the German industry is facing.
02:04Companies are also worried about high salaries, rising energy costs, a lack of skilled labour,
02:10and too much bureaucracy.
02:14It would be beneficial, of course, to see less bureaucracy and to have a framework
02:19that would give us enough certainty and reliability to plan ahead.
02:23However, so far, German and EU politicians seem unable to help.
02:28But they need to or at least help companies become less dependent on the US.
02:33They could help by signing new trade agreements, many of which have been talked about for a long time.
02:42Like the agreement with the Mercosur countries, or a free trade agreement with India or Indonesia.
02:51The slow pace of EU politics makes it even harder for German companies
02:55to withstand the troubles brought upon by the US tariff war.
03:00Yeah, I think it's better to have a job for a job in Canada.
03:06It's impressive they don't have to do the job, it's a lot for them.
03:09The main thing is that a place to live in Canada.
03:11But after that, it's been a place to live in Canada.
03:16The new one has to be able to live in Canada.
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