The survey revealed that 35 % of German companies are planning to lay off. The high costs and duties of the US worsen the situation.
More than a third of German companies expect job disturbances this year. This was shown on Friday the results of a survey of the German Economic Institute (Institut der Deutschen Wirtschaft, IW). TASR informs this based on the DPA report.
The survey was attended by approximately 2000 companies and took place between March and April 2025, at a time when the German economy based on exports faced the threat of aggressive customs policy of US President Donald Trump.
According to a survey, 35 % of companies expect to reduce the number of employees, while only 24 % plan to employ more people. However, these results are more positive than the results of the previous autumn survey, when 38 % of businesses predicted that it would be dismissed and only 17 % expected new people.
The industrial sector is pessimistic
Friday’s study revealed that companies in the industrial sector were more pessimistic than in services, with 42 % of them expecting a reduction in the number of employees compared to 21 %. “The German industry continues to suffer from geopolitical conflicts and the corresponding poor global economy,” the report said. The high cost of energy, regulation and work is also weakened by competitiveness and thus the business of German companies, says the study.
The US has introduced tariffs of 25 % on steel, aluminum and cars and a 10 % flat duties for the remaining import. In addition, Trump announced reciprocal duties for business partners last week, which he postponed by 90 days except for China duties. They picked up to a cumulative 145 %.
“Customs war represents enormous pressure on business,” said the director of the Cologne Institute Michael Grömling. “The whims of Donald Trump come in inappropriate time and are a difficult test for the German economy,” he added.
