Impact of US Policies on Germany's Chemical Industry

The VCI Director-General emphasizes the significance of U.S. economic policies in shaping demand for German chemicals. While fostering a stable trade partnership with the U.S., potential tariffs could hinder the industry. Amid domestic challenges, the VCI calls for low energy costs and a competitive tax environment.

The Director-General of Germany's Chemical Industry Association, VCI, has expressed that U.S. economic strategies, such as tax reductions, might boost the demand for German chemicals. Irrespective of the U.S. administration, maintaining a robust trade relationship with America is crucial for the German chemical and pharmaceutical sector.

Potential U.S. tariffs on EU goods are a pressing concern for VCI, as they could detrimentally impact the chemical industry directly and indirectly. The VCI further notes that high tariffs on imports from China may shift American import sources from China to the EU.

Emphasizing domestic issues, the VCI calls for the resolution of critical problems in Germany and praises the agreement on a roadmap for early general elections. Highlighted needs include lower energy prices and a competitive tax system for industry stability during economic stagnation.

(With inputs from agencies.)