Germany news: Commerce chief calls for stable US trade relations after midterms, warning that uncertainty over Trump's tariff policies remains

The head of Germany's main Chamber of Commerce has called for more predictable US trade policy after Republicans lost control of both chambers of Congress.

"We are counting first and foremost on stability in trade relations with the US," Helena Melnikov, chief executive of the German Chamber of Commerce and Industry (DIHK), told the broadcaster ARD television. "No more zigzagging."

Trump's repeated tariff announcements, reversals and changes to implementation deadlines have made it harder for German exporters to plan.

Melnikov said reliability in Germany's biggest export market was "extremely important," but cautioned against predicting President Donald Trump's next economic moves.

She urged Germany to expand trading partnerships beyond the US and implement promised domestic economic reforms.

Achim Wambach, president of Germany's ZEW economic research institute, warned that losing his congressional majorities could push Trump to pursue more of his agenda through trade and foreign policy, where he retains extensive powers.

"Uncertainty about the future direction of US trade policy remains high," he said, also warning of potential deadlock over the US budget.

Wambach said Democratic control would probably not bring a fundamental return to free trade, pointing to broad bipartisan agreement on protecting US industry and trade policy toward China.

Confidence in Germany's auto industry has risen sharply, reaching its highest level since mid-2024, according to the Munich-based Ifo institute.

The survey was conducted in October, so it does not reflect the US midterm election results or their potential impact on trade policy.

Ifo's business climate index climbed from minus 33.2 to minus 4.1 points. Companies' assessment of their current situation turned positive for the first time since mid-2024, while expectations improved but remained negative overall.

"There can be no talk of an all-clear for the automotive industry," Ifo industry expert Anita Wolfl said, pointing to sharp monthly fluctuations in business confidence as evidence of considerable uncertainty.

Wolfl said a Franco-German agreement on a joint automotive strategy may have helped lift sentiment, but offered only temporary relief.

"It does not change the industry's central challenge of catching up with the leaders in technological competition," she said.

Germany's housing group Vonovia has criticized plans by Berlin's prospective governing coalition to bring large private housing portfolios into public ownership.

The socialist Left Party, Greens and center-left Social Democrats (SPD) have agreed during coalition negotiations to target companies owning more than 10,000 apartments. Their plan envisages compensation of no more than €16 billion ($18 billion) for 160,000 homes — an average of €100,000 each.

"The plans to bring private companies' apartments into public ownership naturally concern us," Vonovia CEO Luka Mucic said while presenting quarterly results.

He called the proposal "simply the wrong approach" and legally questionable, arguing that it would create no additional housing and undermine confidence in investment.

The Financial Times estimated Vonovia's Berlin properties were worth €20.4 billion, compared with potential compensation of €12 billion.

But Maximilian Fuhrmann, a housing researcher at the German Tenants' Association in North Rhine-Westphalia, disputed that assessment. Using Vonovia's stock market valuation and debt, he calculated an average value of just over €100,000 per apartment across its portfolio — broadly in line with the proposed compensation.