• ‘Decoupling is not an option, simply because the US is such an important market for the German economy … We do need the US, and the US needs Europe,’ warns Deissner

• ‘We want a really kind of solid and well thought through agreement … not simply a kind of a handshake deal,’ says Deissner

BERLIN

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.

📌 INTERVIEW – ‘Decoupling not an option’: German business leader urges US, EU to align on trade

🗣️ David Deissner, Managing Director Foundation for Family Businesses:

— I think decoupling is not an option simply because the US is such an important market for the German economy… pic.twitter.com/QSdVPkQIz2

— Anadolu English (@anadoluagency) July 9, 2025

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.

“Uncertainty itself is always bad for businesses … whenever things are getting unstable and unclear, that's not good for long-term business decisions,” he said in an interview with Anadolu.

According to Deissner, the tariff dispute is causing widespread concern among Germany’s family-owned businesses, which comprise 90% of all German companies and form the backbone of Europe’s largest economy.

He emphasized that the consequences are also felt by American trade partners and consumers, creating ripple effects throughout the entire American economy.

“That’s why we have seen foreign direct investment in the US declining in the first couple of months after the election of Donald Trump, and after the so-called Liberation Day,” he said, referring to the day the US president announced his plans for significantly higher tariffs against European countries. “This is, of course, bad for transatlantic business, and it causes harm for both economies, on both sides of the Atlantic.”

While the Trump administration has repeatedly accused European countries of unfair trade practices and threatened increased tariffs, Deissner emphasized that this approach fails to recognize the critical role that German exports play in supporting American industry.

“I think what’s not really part of the debate is that many of the products and the highly specialized, high-end engineering products coming from Germany are so crucially important for the US economy as well,” he stressed.

Deissner’s foundation, Stiftung Familienunternehmen, represents around 600 of the largest family businesses, including several global brands that have investments in the US and for which the US is one of the key markets.

Overall, family-owned businesses in Germany generate approximately 37% of all sales in the country, and employ over half of all employees.

While some of these enterprises are global brands, most are small and medium-sized companies. Nevertheless, they produce highly specialized products that make them crucial in global supply chains.

‘There will be no winners in a tariff war’

Citing a study recently conducted by the group, Deissner said an escalating trade conflict between the US and the EU – including potential additional tariffs on EU imports – would eventually have a negative impact on the GDP of both American and European economies.

He said continued uncertainty would inhibit business decisions, delay investments, and burden bilateral trade in both regions. The increasing trade policy uncertainty, acting as a non-tariff barrier, would cause the US economy to shrink by almost 1% in the long term, while the EU and Germany would each experience more modest GDP losses of 0.2%.

However, a comprehensive agreement to reduce tariffs and non-tariff trade barriers would boost the GDP of the EU and Germany by 0.7% and 0.6%, respectively. The US GDP would also increase by 0.4%, according to the study.

“A tariff conflict doesn’t have any winners in the long run,” Deissner said, adding that tariffs lead to higher prices for companies, often passed on to the customer, or the companies end up with less profit.

“And if you have less profit, the market on the whole becomes less attractive, and maybe German companies in particular would withdraw from the US market. In this case, their products and their services would have to be replaced,” he explained.

Deissner warned that while the Trump administration is hoping to strengthen American industries and bring manufacturing jobs back to the US by raising tariffs, he could face completely opposite results.

“I think it’s very naive to believe that the US can make those replacements in a very short period of time and create US industry jobs, because you need skilled labor, you need long-term investment, long-term R&D, and experience,” he stressed.

‘Decoupling not an option’

President Trump has repeatedly complained that the EU has been “very unfair” to the US, accusing Europeans of imposing restrictions on American cars and farm products while benefiting from unhindered access to US markets. He threatened to raise tariffs on the EU to 50% if negotiations yield no results.

In April, he gave the EU a July 9 deadline for a trade deal to avoid higher tariffs. But on Monday, his administration extended this deadline to Aug. 1, providing additional time for negotiations.

Amid continuing tensions between Washington and Brussels, several European politicians have suggested that the EU should focus on alternative markets such as Asia and other regions, and have argued that EU-US decoupling is inevitable.

However, Deissner dismissed such suggestions, pointing out that the US is Germany’s biggest trading partner, as the total trade volume crossed €250 billion ($293 billion) last year, surpassing Germany’s trade with China.

“I think decoupling is not an option, simply because the US is such an important market for the German economy, for not only automotive, but also so many smaller businesses and their respective products and services,” he said.

“We do need the US, and the US needs Europe as a market, but also as a region that delivers the high-end products. So, there is kind of reciprocal interest and reciprocal dependence in so many sectors. And I think, again, decoupling isn’t a solution,” he stressed.

Need more than ‘a handshake deal’

The expectation of Germany’s family-owned businesses, Deissner said, is a well-negotiated agreement between the US and the EU, which would end uncertainties, and ensure maintaining vital economic ties.

“We want a well-negotiated agreement, and that will not fit on one page,” he said, pointing out that while the swiftly concluded UK-US trade deal last month initially received great enthusiasm, important questions have since arisen.

“We want a really solid and well thought through agreement. This is what we need, not simply a kind of a handshake deal,” he continued.

“We need an agreement which will guarantee economic growth and stability in the long run on both sides of the Atlantic.”