German Exporters Sentiment Takes Hit from U.S. Tariff Threats: Ifo Survey

BERLIN (Reuters) - The mood among German exporters has darkened in June due to uncertainty regarding U.S. tariffs, according to a survey conducted by the Ifo economic institute. The institute's index for export expectations dropped to -3.9 from -3.0 in May, indicating that German exporters are becoming increasingly concerned about the potential impact of U.S. tariffs on their business.

"The tariff threats from the U.S. are still on the table. An agreement between the EU and the U.S. has yet to be reached," said Klaus Wohlrabe, head of Ifo surveys, in a statement. "This uncertainty is lowering exporters' expectations."

President Donald Trump has announced wide-ranging tariffs on trade partners and is seeking to reduce the U.S. goods trade deficit with the European Union. The trade barriers have alarmed German industry, including carmakers, who are worried about the impact on their crucial export business.

The two sides are in talks in an attempt to reach a deal, but European officials are increasingly resigned to a 10% rate on "reciprocal" tariffs being the baseline in any agreement, according to five sources familiar with the negotiations who spoke to Reuters last week.