Abstract
The paper analyses drivers and implications of three challenges facing the German industry as part of the world economy: first, “Trump 2.0” unilateral trade policies and their negative impact on the global trading order; second, decreasing global demand for German exports relative to emerging competitors from abroad; and third, vulnerable access to critical resources in the supply chain. To address these challenges, German policymakers should deepen the EU-internal market and seek strategic partnerships to achieve a level playing field against aggressive unilateralism. German companies should look for investment opportunities abroad and invite foreign companies to joint ventures in order to stabilise supply chains and to close technology gaps.