German alcohol producers and manufacturers with UK operations may have something to celebrate amidst the recent trade tensions between the US and Europe. According to leading tax and advisory firm, Blick Rothenberg, German companies could potentially benefit from Britain’s lower tariff rates under President Trump’s new trade measures.
The US has recently imposed tariffs on steel and aluminum imports from the EU, Canada, and Mexico, sparking fears of a trade war. In retaliation, the EU has imposed duties on American goods, including iconic products such as Harley-Davidson motorcycles and bourbon whiskey. This has caused concern for German alcohol producers and manufacturers, who have strong ties with the US market.
However, there may be a silver lining for these companies. The UK, which is set to leave the EU in March 2019, has been forging closer ties with the US in recent months. President Trump has expressed his desire for a strong trade deal with the UK and has even extended an invitation for the UK to join the North American Free Trade Agreement (NAFTA).
Blick Rothenberg believes that this could potentially work in favor of German alcohol producers and manufacturers with UK operations. The UK currently has lower tariff rates than the EU on certain products, including alcohol. This means that German companies exporting to the US through the UK may face lower tariffs compared to those exporting directly from the EU.
This could be a major advantage for German companies, as the US is the largest export market for German alcohol, with over €1 billion worth of products being shipped to the US in 2017. The lower tariff rates in the UK could provide a competitive edge for these companies and help them maintain their strong presence in the US market.
In addition, the UK’s strong ties with the US may also open up new opportunities for German companies. As the UK looks to strengthen its trade relationship with the US, there may be potential for increased trade and investment between the two countries. This could create new avenues for German companies to expand their operations in the UK and tap into the US market through their UK operations.
Furthermore, the UK’s decision to leave the EU has also led to a depreciation of the British pound, making UK exports more competitive in the global market. This could further benefit German alcohol producers and manufacturers, who may see increased demand for their products due to their competitive pricing.
However, it is important for German companies to carefully consider their options and assess the potential impact of Brexit on their operations. The uncertainty surrounding the UK’s future trade relationship with the EU and the US may pose challenges for these companies. Therefore, it is crucial for them to stay informed and adapt to the changing trade landscape.
In conclusion, while the recent trade tensions between the US and Europe may have caused concern for German alcohol producers and manufacturers, there may be a glimmer of hope for them in the form of closer UK ties with the US. The lower tariff rates in the UK and the potential for increased trade and investment between the UK and the US could provide a boost for these companies and help them maintain their strong presence in the US market. It is important for German companies to stay informed and strategically navigate through the evolving trade landscape to make the most of these opportunities.
