Despite millions in costs from Trump’s U.S. tariffs, Siemens remains calm — but the global investment climate is suffering. CEO Roland Busch sees growing risks, especially for export-driven sectors such as mechanical engineering and the automotive industry.
The tariffs imposed by U.S. President Donald Trump are leaving the Munich-based technology group Siemens largely unfazed. According to CFO Ralf Thomas, the impact of the tariffs for the entire fiscal year through the end of September amounts to “a high double-digit or low triple-digit million-euro figure.” This burden, Thomas stated, is “manageable and under control.”
Despite the manageable direct impact, Siemens is clearly feeling the indirect effects of the protectionist U.S. trade policies. The tariffs are significantly weighing on the global investment climate. As early as April, the company noticed increasing caution among its customers when placing orders, said Siemens CEO Roland Busch. Investment willingness in key industries like the automotive sector and mechanical engineering is declining, especially in export-driven countries such as Germany.
The introduction of 25-percent tariffs on car imports into the U.S. particularly affects German manufacturers like Mercedes-Benz, BMW, and Volkswagen — clouding expectations for the entire industry.
Tariff Policy as a Risk for the German Economy
The labor union-affiliated Institute for Macroeconomics and Economic Research (IMK) warns that Trump’s tariff policy significantly increases the risk of recession in Germany. At the same time, foreign companies’ interest in investing in Germany is declining. According to an analysis by the consulting firm EY, foreign direct investment last year reached its lowest level since 2011 — a clear warning sign for the country’s economic attractiveness.
Siemens CEO Roland Busch appeals to the new federal government led by Friedrich Merz: “A lot is at stake.” Given the current economic situation, the government must do everything possible to promote sustainable growth — while simultaneously “defending our democracy and our value system.” According to Busch, important measures include investments in infrastructure, a more active immigration policy, and a consistent reduction of bureaucracy. “This is not a problem of insight, but rather a problem of implementation.”
A multilingual professional experienced in Europe, Canada, and China, Herbert has developed invaluable networks in the automotive and energy industries. He has led high-profile projects involving ENBW, Mercedes-Benz Group, Siemens Group, and the Fraunhofer Institute.