Berlin in the crosshairs: tariffs endanger industry and growth!

Berlin in the crosshairs: tariffs endanger industry and growth!

On June 19, 2025, the Transformation of the Berlin Industry, under the direction of the Governing Mayor of Berlin, Kai Wegner met. In a session that took place on the BMW motorcycling plant in Spandau, central issues such as the effects of US trade and customs policy, the improvement of the decarbonization projects and the security and defense industry were discussed. The participants included members of the Senate, representatives of the chambers, corporate associations, unions and institutions such as the Investment Bank Berlin and the Federal Employment Agency. [Berlin.de] (https://www.berlin.de/rbmskzl/aktuMittittersungen/2025/Pressemage department. 1571867.php) reports that Wegner wants to support Berlin's industrial companies in their transformation and emphasizes that investments in security and defense technologies are a special focus.

The importance of BMW as a model company in the field of CO2 reduction is particularly noteworthy. Franziska Giffey, the Senator for Economic Affairs, Energy and Companies, emphasized the role of industry as an engine for economic growth in Berlin. She mentioned that in the twelfth year in a row, Berlin recorded economic growth that lies above the national average. Against the background of global crises and trade conflicts, they appeal to the participants to take into account the associated challenges. Also Dr. Stefan Franzke, CEO of Berlin Partner, spoke about the need for technological sovereignty and emphasized the opportunities for Berlin as a location for the innovation for safety -related key technologies.

Negative effects of US customs policy

The trade conflicts between the USA and the EU, in particular the tariffs announced by President Trump on steel and aluminum imports, throw a shadow on the Berlin and Brandenburg economy. It is estimated that these tariffs, which could be up to 25 percent, could bring significant export losses for Berlin, between 105 and 158 million euros annually. This would endanger the competitiveness of regional companies in sectors such as mechanical engineering and pharmaceutical industry. RBB24 emphasizes that the USA is the most important export market for Berlin, with an export volume of 1.53 billion euros in 2023.

In addition, an analysis by the German Institute for Economic Research shows that a flat rate of 25 percent could reduce EU exports to the United States by half in the long term. Sectors such as pharmaceuticals, transport equipment and motor vehicles, all of which are of crucial importance for the German economy, would be particularly affected. [Diw.de] (https://www.diw.de/de/diw_01.c.944558.de/publikation/diw_aktuell/2025_0117/trumps_zollpolpenspoliTe_Was_Skalierende_mit_usa_fuer_eu-exporteors_unde. Development not only affect direct exporters, but also related companies that provide raw materials or components.

strategies to mitigate the effects

The meeting of the control group thus offers an important framework to prepare the regional industries for the upcoming challenges and to develop strategies that strengthen Berlin as a location for innovation. The current situation requires quick action and close cooperation between business and politics to cushion the effects of global trade conflicts and use future opportunities.