The German Association of the Automotive Industry (VDA) warned that the provisional trade accord announced by Brussels and Washington has so far provided “no clarity or improvement” for carmakers. The lobby group urged negotiators to finalise the agreement immediately and roll out the promised relief measures. VDA pressed the United States to suspend its Section 232 investigation and abolish the remaining sector-specific tariffs on European vehicles, contending that the levies are undermining the industry’s competitiveness. It also called on the European Commission and the German government to actively support the demand in forthcoming talks. The plea arrives against a deteriorating economic backdrop. Germany’s economy contracted 0.1 % in the second quarter, and the ZEW institute’s August survey showed investor expectations falling to 34.7, well below both the previous 52.7 reading and the consensus forecast of 39.5. Current-conditions sentiment dropped to −68.6. ZEW noted particular pessimism in the automotive, chemical and machinery sectors, underscoring the urgency of a conclusive trade deal for the export-dependent manufacturing base.
ZEW: Outlook Has Worsened In Particular For The Chemical And Pharmaceutical Industries Mechanical Engineering And Metal Sectors As Well As The Automotive Industry Are Also Severely Affected Financial Market Experts Are Disappointed From The Announced EU-US Trade Deal
ZEW: Outlook Has Worsened In Particular For The Chemical And Pharmaceutical Industries - Mechanical Engineering And Metal Sectors As Well As The Automotive Industry Are Also Severely Affected - Financial Market Experts Are Disappointed From The Announced EU-US Trade Deal
Germany's August ZEW investor expectations decline to 34.7, below the estimated 39.5.