With the inauguration of the future US President Donald Trump on January 20th, Rhineland-Palatinate is also facing more turbulent times. Trump, whose ancestors came from Kallstadt in the Palatinate, announced, among other things, new tariffs during the election campaign. This could affect the important wine industry. A partial withdrawal of US soldiers – according to plans for 2020 that were not implemented – is still considered possible. This would have consequences for the region.
What does politics say?
“The signals that can be heard from the USA suggest that the relationship between the USA and many other countries will change,” says Prime Minister Alexander Schweitzer. Trump’s statements should be taken seriously because they outline possible change and build pressure on those addressed. “For us in Europe, in Germany and in Rhineland-Palatinate, this means that, for example, even closer cooperation with our European neighbors and partners is becoming more necessary.”
It also means, emphasizes the SPD politician, that Europeans have to stand closer together. “For example in security and defense policy and trade and competition policy. It remains to be seen how US policy will take shape in the future.” There is probably no other federal state that has such close ties to the USA as Rhineland-Palatinate. “Our structures of transatlantic cooperation,” says Schweitzer, “have grown and are therefore robust.”
What do companies say?
The USA is and remains an important market for the BASF Group as the largest employer in the state. The company employs more than 13,000 people in the United States. The majority of products sold in the USA come from local production, the company says. The direct impact of tariffs on US business is therefore limited.
BASF is awaiting the steps of the future US administration. “When the new US government is in office and measures, legislative proposals or issues emerge that specifically affect BASF, we will present our perspective as part of the usual dialogue with politicians.” In principle, the company supports the free trade of services and goods across borders, as it increases prosperity and economic dynamism for all parties in the long term.
The commercial vehicle manufacturer Daimler Truck in Wörth also welcomes free and fair trade. With more than 100,000 employees worldwide and around 18,000 in the USA, the internationally active company is dependent on a reliable political framework, says a spokesman. “As one of the leading truck manufacturers in the United States, we will continue to expand our existing relationships and work constructively with the new administration.”
Wine and economy
There was a hangover in the Rhineland-Palatinate wine industry during Trump’s first term in office (2017-2021). In 2019, the USA imposed a 25 percent increased tariff on wine from Germany. In order to maintain exports to the USA even after the tariffs were introduced, German exporters and US importers shared the costs.
“We fear nothing good,” said the managing director of the German Wine Institute (DWI) in Bodenheim, Monika Reule, shortly after the US election. “Renewed punitive tariffs would be fatal for German export-oriented companies. The USA remains our most important export country.” In view of the difficult market situation in Germany, a weakening of exports, in which at least some increases could still be achieved, would be “poison for the German wine industry”.
“The USA is a central key market for Rhineland-Palatinate,” emphasizes foreign trade expert Volker Scherer. In 2023 alone, around ten percent of exports from the state went directly to the United States. However, the experiences of Trump’s first term in office raised concerns. “Even back then, US tariffs hit the Rhineland-Palatinate economy severely.”
As an extremely export-oriented federal state, Rhineland-Palatinate is disproportionately dependent on open markets, says the International Managing Director at the IHK Pfalz. “New or increased US tariffs could make doing business with the USA uneconomical for many companies.” In response, many companies are exploring alternatives. “For example, increased market development in Africa and Asia or a relocation of production facilities and branches to the USA, as Trump is aiming for.”
Trump’s Palatinate roots
Trump was very close to his Palatinate roots twice. On the way home from Iraq (2018) and Afghanistan (2019), the then president stopped at the US base in Ramstein. From there it is only about 60 kilometers to Kallstadt – not a great distance for helicopters from the huge military area near Kaiserslautern. But after Trump’s brief meeting with soldiers, Air Force One continued to fly.
Will there be an official visit during the second term? Kallstadt Mayor Thomas Jaworek (CDU) said recently that he would accept the task of showing Trump the “pretty wine-growing village” and going with him to the church where his grandparents were baptized. But he doesn’t know whether Trump wants this or what it means to him.
A visit in 2027?
It cannot be ruled out that Trump will come to Rhineland-Palatinate. One possibility: Not far from Ramstein, a superlative US hospital for around 2,500 employees is currently being built in Weilerbach. The clinic with 4,680 rooms, 120 treatment rooms and 9 operating rooms is scheduled to be handed over to the US armed forces in 2027 – in the presence of the President and Commander-in-Chief Trump?
Political changes at the top of a state, especially with such global importance as the USA, are always accompanied by changes, reminds Prime Minister Schweitzer. “We have to and will deal with this in Europe, in Germany and also in Rhineland-Palatinate.”