Trump’s Data Threat: German Firms Fear Impact

Berlin – The Federation of German Industries (BDI) is sounding the alarm, warning of significant uncertainty for businesses if former US President Donald Trump acts to dismantle the legal framework governing data transfers between the EU and the United States.

Iris Plöger, a BDI board member, emphasized to Handelsblatt that “reliable and legally sound transatlantic data traffic is essential for German industry.” She added that the failure of the EU-US Data Privacy Framework would have “devastating consequences for companies and authorities, leading to considerable additional expense and legal uncertainty.”

The current agreement between Brussels and Washington relies on commitments made by the US government under former President Joe Biden’s “Executive Order.” Such an order is vulnerable to reversal, particularly when a new president takes office or political priorities shift. Concerns arise from Trump’s stated intention to review security policy decisions made by his predecessor.

This review could directly impact the data agreement with the EU, as it governs the operational practices of US intelligence agencies. The existing deal significantly restricts these agencies’ broad access to personal data transferred from the EU to companies in the US. These limitations are crucial for ensuring the legality of data transfers.

The BDI’s warning highlights the potential disruption to transatlantic commerce and underscores the importance of a stable and secure data transfer framework for German businesses operating in the global economy.