Washington: US President Donald Trump's tariff threats and ongoing uncertainty are harming companies on both sides of the Atlantic, a prominent German business leader said, calling for a well-negotiated agreement to maintain vital economic ties. David Deissner, managing director of a Berlin-based foundation representing Germany's family-owned companies, warned that the current trade tensions are creating a destabilizing environment for businesses across Europe and America.

According to Anadolu Agency, Deissner highlighted the widespread concern among Germany's family-owned businesses, which make up 90% of all German companies and form the backbone of Europe's largest economy. He emphasized the consequences felt by American trade partners and consumers, which create ripple effects throughout the entire American economy. This has led to a decline in foreign direct investment in the US following Trump's election and the announcement of higher tariffs against European countries.

While the Trump administration has accused European countries of unfair trade practices, Deissner emphasized the critical role that German exports play in supporting American industry. He noted that many German products are crucial for the US economy, and these tensions could harm transatlantic business relations.

Deissner's foundation, Stiftung Familienunternehmen, represents around 600 of the largest family businesses, many of which have significant investments in the US. Family-owned businesses in Germany generate approximately 37% of all sales in the country and employ over half of all employees. Despite being small and medium-sized, these companies produce highly specialized products crucial in global supply chains.

Citing a study conducted by the group, Deissner warned that an escalating trade conflict between the US and the EU could negatively impact the GDP of both American and European economies. Continued uncertainty would inhibit business decisions, delay investments, and burden bilateral trade. However, a comprehensive agreement could boost GDP for both regions.

Deissner also addressed the potential consequences of a tariff war, noting that tariffs lead to higher prices for companies and customers. He warned that German companies might withdraw from the US market if tariffs continue, which could have adverse effects on both economies.

Amid suggestions for EU-US decoupling, Deissner dismissed the idea, pointing out the significant trade volume between the US and Germany. He stressed the reciprocal interest and dependence in many sectors and argued that decoupling is not a viable solution.

Ultimately, Deissner called for a well-negotiated agreement between the US and the EU to end uncertainties and ensure economic stability. He emphasized the need for a solid agreement that would guarantee long-term economic growth and stability on both sides of the Atlantic.