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.