Trump’s Tariffs and Their Implications for the German Mid-Market
The trade policy measures of the U.S. government under Donald Trump are commanding equal attention from business owners and executives on both sides of the Atlantic. Benedikt Ibing, Managing Partner of the Pegasus Group and a seasoned advisor to mid-market companies operating in the U.S. market, shared his views on the practical consequences of this policy in a conversation with Chelsea Spieker.
Shifting Parameters for Transatlantic Business
The newly introduced or increased tariffs are fundamentally altering the cost assumptions for companies that trade or manufacture goods between Europe and the United States. What was previously considered a reliable cost framework must in many cases be reassessed — both for existing supply chains and for planned market entry strategies.
For German mid-market companies, which have traditionally been strongly export-oriented, this translates into direct pressure on margins and an increased urgency around strategic decisions regarding production locations, supplier relationships, and pricing.
Perspectives from Advisory Practice
As Managing Partner of a transatlantic M&A and advisory boutique, Ibing observes these developments firsthand in his day-to-day work with clients. The impact of tariff policy extends beyond the direct movement of goods — it also affects valuation parameters in corporate transactions and the relative attractiveness of investment locations on both sides of the Atlantic.
What Decision-Makers Should Do Now
Given the persistent uncertainty, it is advisable for managing directors and shareholders of mid-market companies to critically review their own market position and value creation structure. In practical terms, this means:
- Analyze supply chains: Which intermediate inputs or finished goods are directly affected by tariff increases?
- Model scenarios: How do contribution margins change under different tariff levels?
- Evaluate strategic options: Local production, alternative sourcing markets, or structural adjustments can reduce exposure to tariff-driven volatility.
- Reconsider transaction plans: Anyone planning a company sale or acquisition in the transatlantic space should factor the changed risk landscape into their due diligence.
Stability Through Experience
The Pegasus Group has been advising mid-market companies on market entries, transactions, and strategic decisions in the transatlantic arena for more than four decades. Particularly in a trade-policy environment marked by volatility, deep market expertise matters more than ever — not as a reaction to the latest headlines, but as a sound foundation for entrepreneurial decisions with lasting impact.
Link to the podcast: https://www.thepioneer.de/originals/thepioneer-briefing-business-class-edition/podcasts/usa-wie-blicken-unternehmer-vor-ort-auf-die-zoelle-benedikt-ibing