German exporters worried about uncertainty over US tariff threats

The sentiment among German exporters soured in June amid uncertainty surrounding US tariffs. The Ifo Institute's index of export expectations fell to -3.9 points from -3.0 in May. Reuters explains that businesses are growing less confident in the stability of foreign trade.

At the moment, Washington's threats still stand, and no agreement between the EU and the US has been reached. Klaus Wohlrabe, head of Ifo surveys, believes this adds to concerns among German manufacturers, especially given US President Donald Trump's plans to narrow the trade deficit by raising tariffs.

German automakers and other key industries whose income depends on exports are worried about the negative impact of new tariffs, Ifo concludes. While the sides are still in talks, European authorities are considering the possibility of imposing a base rate of 10% on US goods, according to Reuters.