Germany is facing a difficult time with US President Donald Trump’s tariffs, which could put the country on track for its third year of recession. The 10% tariff on German exports has already hit many companies hard, but some are finding ways to adapt.
Birkenstock, a quintessentially German brand, is one such company that remains resilient despite the tariffs. The brand produces 95% of its shoes at its own factories in Germany and is less exposed to tariffs than its peers.
However, even with lower prices, Birkenstock’s sales remain strong due to consumers prioritizing comfort and quality over price. According to a weekly survey by Footwear Distributors and Retailers of America, shoe sales since Trump’s inauguration have been down 9.5%, but Birkenstock has not seen any noticeable change in demand.
Birkenstock is expanding its US operations despite the current turmoil, with plans to open up to five more stores in the country by the end of September. The company believes that consumers like Clay White, who bought his third pair of Birkenstocks in 2011 and now values comfort above price, will continue to support the brand.
Meanwhile, German brewers are also facing a dilemma, as US tariffs threaten to increase production costs and burden American beer drinkers with higher prices. Dr. Loosen, a winery in the Mosel region known for Riesling, said that the financial implications of Trump’s tariffs appear unavoidable and will be “a bitter pill to swallow”.
As tensions between Germany and the US continue to rise, investors are left wondering how long the current turmoil will last and what impact it will have on earnings and the economy.
Source: https://www.reuters.com/business/retail-consumer/german-birkenstocks-beer-riesling-wine-caught-us-tariff-crosshairs-2025-04-11