As per the reports of the RND newspaper chain, the trade tension between United States and Europe are expected to make a further escalation in the 44% of the firms of Germany.
This would be because the trade war is expected to continue for a long period of time it is bound to diminish the new investments.
The RND further reported that 34% fail to notice an increase in the strain in the trade ties.
It also said that the forty one percent of the surveyed firms reckon that it was improbable that the United States and the European Union could reach an agreement on the trade agreement between them.
The president of United States of America Mr. Donald Trump along with the president of the European Commission, Mr. Jean Claude Juncker had hit an agreement in July that protected firms of Europe from all the auto tariffs of the United States amid the efforts of the two countries to work on the issues of trade.
However Cecilia Malmstrom, the European trade commissioner announced last week that the scope of any trade deal between the United States and Europe would be limited to industrial goods only while agriculture goods will remain unaffected by it.
The former director general of the World Trading Organisation said the previous month that Europe should prepare itself also for its companies will also be targeted by sanctions of the United States due to the ever worsening trade disputes between China and US.
According to RND the downturn of the economy of Germany is expected to continue due to the given worldwide economic developments.
Eric Schweitzer the DIHK president said that it appeared crucial to continue the dialogues with Washington, with the sole goal of negotiating a with US an agreement of long term free trade.
This agreement will provide industries with more certainty as well give more room for maneuver.
Source: Reuters, NewYorkTimes
