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German companies in the US elections: Donations flow to Trump and Harris

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As the US presidential election on November 5 draws closer, German companies are making their political preferences known through donations.

According to an analysis by German Foreign Policy, most German companies are backing Donald Trump and other Republican candidates in the US election campaign.

DAX-listed companies Covestro and Heidelberg Materials are among the most vocal in their support, directing more than 80% of their campaign budgets toward Republican candidates. Only Allianz and SAP have leaned more towards Democrats than Republicans.

T-Mobile has spent the most, with over $800,000 allocated to political lobbying. BASF followed with $328,000, Fresenius with $204,000, Siemens with $203,000, and Bayer with $195,000.

German politicians are also engaging with Republicans, particularly those seen as having a “moderating influence” on the protectionist measures Trump is expected to push if re-elected.

While Germany’s Ministry of Economics is reassessing US-German supply chains and exploring alternative suppliers, companies are preparing for the potential need to increase local production in the US.

Millions in lobbying dollars

A majority of German companies are now backing Donald Trump in the 2024 election. While many supported Joe Biden in 2020, as of September 22, donations from these companies—totaling around $2.3 million—are now largely directed towards Republican candidates.

Based on Federal Election Commission figures analyzed by the Center for Responsive Politics, 84.7% of Covestro’s campaign contributions have gone to Republican candidates, up from 78% in 2020. Covestro produces polyurethane and polycarbonate raw materials and has most of its US facilities located in Republican-controlled regions.

Heidelberg Materials followed closely, contributing 83.5% of its donations to Republicans. Bayer (60.3%), Fresenius (60.2%), and BASF (58.9%) also leaned Republican. By contrast, Allianz and SAP supported Democratic candidates with 58% and 54.6% of their contributions, respectively.

Big spender: T-Mobile

As in the 2020 election, T-Mobile has been the biggest spender among German companies.

By October 14, T-Mobile had donated $379,000 to Democratic candidates and $422,000 to Republicans. BASF was the second-largest contributor, giving $135,000 to Democrats and $193,000 to Republicans.

Other notable contributors include Fresenius ($81,000 to Democrats, $123,000 to Republicans), Siemens ($95,000 to Democrats, $108,000 to Republicans), and Bayer ($73,000 to Democrats, $122,000 to Republicans).

Meanwhile, German automakers such as BMW, Mercedes, and Volkswagen, along with Infineon, Munich Re, and Deutsche Bank, made more modest contributions ranging from $0 to $20,000.

German companies set up political action committees for donations

In the US, corporations are not allowed to directly sponsor political parties or candidates; such contributions are only permitted at the local or regional level. As a result, many companies establish Political Action Committees (PACs) to raise funds from their executives and managers.

Bayer, for example, stated: “The Bayer PAC allows employees to collectively donate to candidates who share our interests. Eligible candidates must be familiar with issues affecting the company, chair relevant committees or hold key positions, or represent states where the multinational has subsidiaries.”

Big Pharma vs. Harris

Bayer has expressed dissatisfaction with the Democrats’ healthcare policies, which aim to reduce living costs for Americans. Conservative German media outlets, such as FAZ, have criticized these policies—particularly those targeting high food prices—as “economic populism.” Under the Inflation Reduction Act (IRA), the Biden administration empowered Medicare to negotiate drug discounts with pharmaceutical companies.

In August, President Biden and Vice President Kamala Harris announced significant price reductions for ten commonly used drugs, including Bayer’s blood thinner Xarelto, which dropped from $517 to $197 per month. At a campaign rally in Maryland, Biden declared, “We beat Big Pharma.”

Cooperation with Trump on glyphosate cases

Bayer is also hopeful that a Republican win could aid its efforts to fend off further lawsuits related to glyphosate. The Trump administration had previously intervened in a compensation case in Bayer’s favor during his first term.

The company also expects to benefit from Trump’s plans for deregulating environmental protections. One of Trump’s first acts in office in 2017 was to replace the head of the US Environmental Protection Agency (EPA).

In addition, large corporations such as BASF and Fresenius support the Republicans’ plan to cut corporate taxes from 21% to 15%, in contrast to the Democrats’ proposal to raise the rate to 28%.

The German government’s targeted support for US Democrats

German companies are not exclusively supporting Republicans. Some are backing conservative-leaning factions of the Democratic Party, such as the Blue Dog Coalition and Moderate Democrats.

For example, BASF made one of its largest donations—$8,000—to Democrat Debbie Dingell, who has fought against groundwater contamination caused by BASF’s Wyandotte plant in Michigan.

German companies are also selectively funding Republicans in states where they have operations. This approach aligns with the strategy of Michael Link, the German government’s coordinator for transatlantic cooperation. Link has spent the past two years engaging with Republican governors and senators representing states where major German firms are based. While many of these governors support Trump, they are primarily focused on their own states’ interests and do not want a trade war with Europe, Link explains.

Berlin’s outreach to ‘moderate’ republicans

The German government is working hard to establish connections with Republicans who might temper Trump’s isolationist agenda, writes the Financial Times (FT).

According to the FT, a crisis management group involving Link, officials from the Foreign Office, and staff at the German Embassy in Washington is preparing for a possible change in US leadership.

The German Institute for Economic Research (IW) estimates that Trump’s proposed 60% import tariffs on Chinese goods and 10% tariffs on imports from all other countries could cause Germany’s GDP to shrink by more than 1% by 2028. If China retaliates, the economic impact would be even greater.

Ministry of Economics analyzes supply chains

In response to Trump’s proposed tariffs, Germany’s Federal Ministry of Economics and Technology is reviewing transatlantic supply chains and exploring alternative suppliers for raw materials and high-tech products currently sourced from the US.

German companies in sectors like engineering are also investigating the potential need to shift production to the US. “The trend toward localized production will only intensify,” predicts Christoph Schemionek, a representative of the German Chamber of Industry and Commerce (DIHK) and the Federation of German Industries (BDI) in Washington.

Meanwhile, the EU is preparing its own responses. While seeking a negotiated agreement, the EU stands ready to defend itself if necessary, sources say. The IW foresees “aggressive bilateral negotiations with short-term benefits” as a likely outcome.

The EU has also started compiling a list of US products that could face retaliatory tariffs if negotiations break down.

Europe

German officials urge fighter jet alliance with Sweden and Spain

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German Defence Ministry officials have advised Berlin to form a new fighter jet partnership with Sweden and Spain rather than join an existing UK-led consortium.

Internal ministry assessment notes obtained by Politico state that a trilateral arrangement among Germany, Sweden, and Spain represents a “more advantageous and promising” approach than joining the Global Combat Air Programme (GCAP) run by the UK, Italy, and Japan.

The proposal outlined in the document does not yet represent a final government decision, nor does it contain any indication that German Defence Minister Boris Pistorius has approved the recommendation.

The advice was drafted after Germany’s flagship project with France to build a next-generation fighter jet collapsed in June following years of industrial infighting.

Initiated in 2017 and later joined by Spain, the Future Combat Air System (FCAS) was conceived as a showcase initiative for European defence cooperation. The partnership aimed to develop an aircraft to replace Germany’s Eurofighter fleet starting in 2040.

However, the initiative foundered on disputes over operational control and workshare between France-based Dassault and Germany-based Airbus Defence and Space. Following unsuccessful rescue attempts at the political level, Berlin withdrew from the joint fighter project this year.

UK Prime Minister Andy Burnham raised the prospect of Germany joining GCAP during an 8 October meeting in Berlin with Friedrich Merz. The two leaders agreed that officials should continue discussions.

For Berlin, the choice carries implications that reach far beyond which model its air force will fly. The decision will determine who controls future military technology, which countries secure production contracts, and whether a new European partnership can avoid the frictions that dismantled FCAS.

Ministry assessment keeps distance from UK-partnered GCAP project

The ministry assessment listed several reservations regarding the GCAP project. The report argued that the existing programme focuses on operations beyond Germany’s capability requirements, whereas Berlin needs an aircraft better suited for missions over continental Europe.

The document also noted that German manufacturers would struggle to secure a significant share of development and production work within an already established partnership.

Invoking past experiences with the Eurofighter programme, which was developed in the 1990s and entered service in the early 2000s, the document took direct aim at British defence contractor BAE Systems.

The German Defence Ministry assessment accused BAE Systems of prioritizing exports over the development interests of Germany and Italy, warning that British dominance would prove incompatible with an equal partnership.

By contrast, the document stated that the military requirements of Germany, Sweden, and Spain align closely and that their starting positions are well balanced.

The assessment proposed an industrial partnership between aerospace giant Airbus and Sweden’s Saab, while recommending that the Saab-manufactured Gripen E fighter jet serve as a technological stepping stone until the new aircraft is developed.

The German Defence Ministry declined to comment on the matter. A separate ministry note, however, recorded British efforts to integrate Germany into GCAP as an observer or participant, asking German officials to examine potential industrial roles and military requirements.

An Airbus spokesperson said the company was “generally open to cooperation”, provided that German and Spanish industry secured a “substantial and equal role” across development, production, and operational phases.

“Purely political decisions without an industrial foundation remain insufficient,” the spokesperson said, urging authorities in Berlin and Madrid to clarify the path forward swiftly.

In an interview published in Handelsblatt on Monday, Airbus defence chief Michael Schollhorn pointed to ties with Saab, noting that the two companies have always worked well together.

A Saab spokesperson also indicated that the company is receptive to broad defence cooperation, including in fighter aircraft.

Emphasizing that large-scale collaborative projects are handled at the political level and that participation decisions rest with the respective governments, the spokesperson said: “All questions regarding potential Swedish participation should be directed to the Swedish government. Saab stands ready, as always, to support Sweden’s future fighter aircraft requirements.”

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EU reopens debate on naming envoy for Ukraine talks with Putin

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The European Union has returned to the idea of appointing an envoy to hold talks on Ukraine with Russian President Vladimir Putin.

According to sources familiar with the matter who spoke to Politico, this search gained fresh momentum following a visit to Russia by Steve Witkoff, the US special envoy.

During his trip, Witkoff proposed to Putin that Russia, the US, and Ukraine hold trilateral talks.

European countries, meanwhile, fear that Washington could accept terms unfavourable to Kyiv in negotiations that exclude them.

Sources speaking to Politico said the names being discussed for the envoy role include European Commission President Ursula von der Leyen, European Council President António Costa, and EU High Representative for Foreign Affairs and Security Policy Kaja Kallas.

Some European diplomats believe Finnish President Alexander Stubb may be the most suitable candidate for the post.

Stubb’s good relations with Trump and Finland’s experience in dealing with Russia are cited among the factors setting him apart.

An unnamed EU diplomat described Stubb as the only European politician so far to have demonstrated senior-level leadership.

Another group of diplomats argues that Costa should lead the talks. European leaders asked Costa during last week’s EU summit in Brussels whether the time had come to speak with Putin.

Politico’s source recounted that exchange: “Costa said no, saying he would not speak to Putin right now. But if we want to play a role in the negotiations, Costa still needs to initiate dialogue with Putin.”

According to an assessment by another source, the European Council president could serve as a more neutral mediator than von der Leyen or Kallas, who are seen as overly focused on supporting Ukraine.

“Three or four people cannot go there with each of us speaking on behalf of the European Union,” one of the sources told the publication. “Ultimately, the choice of who represents the EU must be based on maximum efficiency, not on a personal power struggle or someone’s narcissistic ambitions.”

Politico previously reported in January that the EU was considering appointing a special representative for Ukraine negotiations. At the time, the initiative drew support from several European leaders, including French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni.

Putin said he was ready to negotiate with European countries, but asserted that Europe had “no peace agenda” and stood “on the side of war”.

The Russian leader also named former German chancellor Gerhard Schröder as Moscow’s preferred negotiator from Europe.

Kallas ruled out such an appointment, noting that Schröder was “a lobbyist for Russian state companies” and would sit “on both sides of the negotiating table”.

Stubb details obstacles to talks and Oslo diplomatic drive

Finnish President Alexander Stubb said the principal obstacle to ending the war between Russia and Ukraine was the territorial issue.

Stubb took part in talks in Oslo with US envoy Steve Witkoff, who subsequently travelled to Saint Petersburg to meet Vladimir Putin.

As reported by the newspaper Helsingin Sanomat, Stubb stated that advancing the peace process required either bilateral talks between Russia and Ukraine or trilateral negotiations involving the US.

The Finnish president listed the other major items to be addressed within a settlement as US security guarantees for Ukraine and the construction of a new European security architecture after the war ends.

Without stating it outright, Stubb implied that the core issue within this framework was Ukraine’s NATO membership. The Finnish leader pointed to monitoring the ceasefire, establishing the line of contact, ensuring energy and food security, and exchanging prisoners as practical tasks.

Stubb also detailed the talks held in Oslo on 20 October, which included Witkoff, Ukrainian President Volodymyr Zelenskyy, and Norwegian Prime Minister Jonas Gahr Støre.

The discussions, which spanned approximately eight hours across various formats, had three objectives: to lower tensions in public discourse, to convey European and Ukrainian proposals to the US envoy before his visit to Russia, and to determine the next steps toward a peaceful settlement. Stubb announced that these goals had been achieved.

Moscow ready to resume trilateral talks in November

Witkoff met Putin in Saint Petersburg on Wednesday.

Following the meeting, Russian presidential aide Yuriy Ushakov announced that Moscow was prepared to resume trilateral negotiations with the US and Ukraine during the first half of November.

Ushakov also said that the EU and NATO had begun to “take a more serious approach” to Kremlin proposals on Ukraine, adding that “matters” were moving toward an end to the conflict.

Witkoff described the meeting as “constructive”.

Sources told Bloomberg in September that Putin continued to insist the Donetsk region must come fully under Russian control, expressing confidence that the territory would be captured within the next six months.

Putin previously set conditions for ending the war, demanding that Ukraine abandon plans to join NATO, maintain a neutral and non-nuclear status, and that anti-Russian sanctions be lifted.

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Trump midterms calculus halts Israeli strike plan against Iran

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A comprehensive military operation planned by the Israeli military for 10 October did not take place because US President Donald Trump chose to avoid a broad conflict before the 3 November congressional midterm elections.

Preparations had been made on the orders of Prime Minister Benjamin Netanyahu for an aerial bombardment meant to last several days, according to a report by the Financial Times citing sources familiar with the matter.

The list of targets included nuclear facilities and locations associated with the Iranian leadership, along with power stations and other civilian infrastructure sites.

The planned strikes were projected to exceed the joint operation launched by the US and Israel in February in terms of intensity.

White House Deputy Press Secretary Anna Kelly told the newspaper: “The United States is not going to strike Iran at any point before the midterms.”

Kelly argued that the administration in Tehran was in distress both economically and militarily, adding that the blockade imposed on Iranian ports and US efforts to secure oil shipments through the Strait of Hormuz were producing results.

Speaking to the newspaper, one source addressed the possibility of strikes resuming in the coming weeks, saying: “There’s either going to be a deal or a strike.”

The same source reported that Washington aims for a comprehensive settlement that resolves the conflict over both the Strait of Hormuz and the nuclear programme, although it remained unclear whether the US would have participated directly in the cancelled operation.

Another source said the preparations for the operation might have served as leverage to pressure Tehran in negotiations, adding that the final decision on any new military step rests with the US president.

Hegseth reviews updated target list in Israel

An Israeli official said US Secretary of War Pete Hegseth visited Israel on 19 October to meet with Netanyahu and senior representatives.

Another source stated that the Israeli side presented an updated target list to its American counterparts, compiled with fresh intelligence and incorporating civilian infrastructure sites that had not been struck earlier this year.

The Pentagon did not respond to questions regarding the meetings, while Netanyahu’s office and the Israeli military declined to comment.

Despite the postponement of the operation, Trump and Netanyahu continued to issue military warnings to Iran in public.

In a video released on 19 October, Netanyahu addressed Trump, saying: “Donald, you said we need to finish this, and we will finish it together.” Speaking on speakerphone, Trump responded: “You’re a great warrior, and we’re going to prove it very soon.”

These engagements between the leaders coincide with critical election cycles in both countries.

Parliamentary elections in Israel are scheduled for 27 October, one week before the vote in the US.

Most public opinion polls in the country show the opposition bloc holding a narrow lead over Netanyahu’s coalition, though neither side commands a clear majority.

Axios, a US-based news outlet, previously reported that the Pentagon instructed military planners to finalize strike plans against Iran, though the directive specified no date and Trump had not reached a final decision.

On 15 October, CNN reported on plans to use the GBU-43/B munition, known as the “mother of all bombs”, against Iranian nuclear facilities, with US officials who spoke to the broadcaster expressing scepticism about the weapon’s ability to destroy deep bunkers.

While Tehran announced that it remains open to a diplomatic solution, it declared that any potential operation would draw a fierce response.

Iranian Foreign Minister Abbas Araghchi stressed that if its adversaries chose military conflict, the response would be “much harsher than before”.

Following the joint operation launched by the US and Israel on 28 February, Iran retaliated by striking targets across the region and restricting maritime passage through the Strait of Hormuz.

Although the parties reached an agreement in June covering a ceasefire and negotiations to lift the blockade in the strait, reciprocal strikes between the US and Iran have not ceased.

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