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EY Survey Finds Tariffs Squeezing Profits as CEOs Pivot Investment to the U.S.

The findings point to localization strategies that increase pressure on Germany's export model.

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Neue Zoll- und Handelsbarrieren sorgen in Chefetagen für erhebliche Sorgenfalten. Einer EY-Umfrage zufolge geben weltweit 77 Prozent der CEOs an, dass höhere Zölle die finanzielle Leistung ihres Unternehmens deutlich schwächen werden.

Overview

  • The August poll of 1,200 CEOs in 21 countries finds 77% expect higher tariffs to significantly weaken performance, rising to 92% in the U.S. and 76% in Germany.
  • In response, 74% plan to localize by investing in sales markets and building local production and distribution capacity.
  • The U.S. is the top near-term destination, with 82% planning investment there in the next 12 months, ahead of Canada and the United Kingdom (32%), India (23%) and Germany (21%).
  • Only 43% foresee easing within a year, while 24% expect at least three years of uncertainty globally, rising to 32% in Germany and 46% in Japan (15% in the U.S.).
  • EY’s Sandra Krusch warns that the shift toward local production will redirect investment away from Germany and erode the viability of its export-led model.