German companies find it harder to do business abroad: Report

By Mucahithan Avcioglu

ISTANBUL (AA) - Geopolitical risks, trade barriers and a slowdown in the global economy are slowing down companies' investments overseas, making it increasingly difficult for German companies to do business abroad, the German Chamber of Commerce and Industry (DIHK) said Thursday.

According to the DIHK's Going International 2025 survey, 58% of German companies operating abroad reported that they had faced additional trade barriers in the last 12 months, also marking the second highest rate since 2012.

While 59% of German companies complained about local certification requirements, 45% noted that increased security regulations, opaque legislation and high tariffs made planning difficult and increased costs.

Four out of five companies (83%) reported difficulties such as bureaucratic hurdles and uncertainties, for example in complying with the German Supply Chain Sustainability Act (LkSG).

Meanwhile, 70% of the German companies surveyed said the US trade policy will negatively affect their business.

Also, 23% of companies expect foreign trade to weaken this year, while 15% expect it to recover.

"The growing trade barriers and protectionist signals from Washington are causing our companies great concern," said Volker Treier, head of foreign trade at the DIHK.

"The barriers to foreign trade must be removed sooner rather than later. The global environment is challenging enough – we cannot afford additional bureaucracy," he added.