German companies in the United States are showing some reluctance to invest in view of the US presidential election, according to a survey by the German Chamber of Industry and Commerce (DIHK) published on Monday, November 4, 2024.
The DIHK said companies are waiting to see what the future economic policy of the country will be.
DIHK foreign trade chief, Volker Trier, said the global economic environment could become more complicated with the US election outcome, which would put a strain on international trade relations.
Prospective tariff increases, which have been an ongoing election campaign issue, pose a particular risk for German companies, he said, referring to Republican presidential candidate Donald Trump.
“The prospect of tougher trade policy, particularly under a potential Trump administration, could further exacerbate concerns about supply chain disruptions and trade barriers,” Trier said.
A report by the German News Service (delivered by dpa) indicates that director of the German Economic Institute, Michael Hüther, has also warned against Trump’s intention to introduce import tariffs, if elected, adding: “For the export-oriented German economy, which is already in a profound structural crisis, this would be an expensive disaster.”
Hüther added that the US is Germany’s most important export partner, saying: “Mechanical engineers, carmakers and pharmaceutical companies are particularly reliant on trade with the US.”
Overall, however, German companies expect business in the US to remain stable, according to the DIHK, citing a special evaluation of the US in a survey of member companies of the German Chambers of Commerce Abroad network.
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According to this, 38 percent expect better economic developments in the US in the next 12 months.
Meanwhile, German pharmaceutical company BioNTech bounced back to profitability in the third quarter of 2024, as it announced on Monday with comparatively early approvals for adapted Coronavirus vaccines driving up sales.
Overall, revenues amounted to €1.24 billion ($1.34 billion) at the Mainz-based company, which became famous early in the Coronavirus Pandemic in 2020 for quickly developing a vaccine. The firm made a profit of €198.1 million, compared with a loss of almost €808 million in the previous quarter.
The variant-adapted Covid-19 vaccines were brought to market earlier than in the previous year due to regulatory approvals in the EU, the UK and the US, said chief financial officer Jens Holstein.
This contributed to the strong sales in the third quarter which ended in September, he said. In the third quarter of the previous year, sales were lower at around €895 million, with a profit of €160.6 million.
Despite sales of around €1.56 billion, the company posted a loss of almost €925 million for the first nine months of the current fiscal year. For the year as a whole, BioNTech now expects sales at the lower end of the forecast range of between €2.5 billion and €3.1 billion.
Together with the U.S. company-Pfizer, BioNTech is currently working on the development of a combination vaccine against influenza and Covid-19.
Chief executive, Uğur Şahin, said he also sees progress in the development of cancer drugs. BioNTech is aiming for the first market approval for an anti-cancer drug in 2026, and from then on, annual market approvals in oncology are planned.
