German firms sound alarm over US tech dependency as Trump era looms

BERLIN

A new study has revealed that 90% of German companies were heavily dependent on digital technology imports and they were concerned about economic uncertainty with Donald Trump’s return to the White House.

According to a survey conducted by the digital industry association Bitkom, 81% of German businesses depend on US digital imports, with 41% describing themselves as “highly dependent.” These imports included electronic devices, software programs, and digital services.

Amid concerns over Trump’s policies, 56% of German companies have begun revising their business strategies, while 50% anticipate making changes to their supply chains, according to the survey.

Bitkom's President Dr. Ralf Wintergerst said Trump's return to power will present a significant challenge for Germany and Europe, due to his unpredictable economic and trade policies, and renewed tariff threats.

“Although the US will remain one of our most important partners, we must now position ourselves stronger, more resilient and more opportunity-oriented and become more technologically and economically independent. The new German government must put the economy back at the center of politics and make digital sovereignty a top issue,” he said.

The survey highlighted the vulnerability of the German industry, with nearly 50% of companies reporting they would not survive more than a year without digital imports. After the US, China emerged as another major source of digital imports for German companies, with 79% of them importing digital technologies or services from the Asian giant.

The report showed that end devices – smartphones and laptops – dominated digital imports, with 90% of German companies buying these items from abroad. Software applications represented 75% of imports, while cybersecurity tools like firewalls made up 72%.

Digital components and hardware, including chips, semiconductors, and sensors, accounted for 69% of imports, and 66% of companies depended on foreign-made digital equipment for production.

Half of German companies also relied on foreign providers for digital services like app development and IT consulting, according to the survey.