“Tomorrow marks the start of October – and forecasting the fourth quarter is like looking into a crystal ball.”

This apt remark by Prof. Dr. Christoph Spengel was made during this year’s MaFAT Annual Event and introduced the discussion on the economic impacts of the Trump administration.

MaFAT Research Award

In addition to members of MaFAT e. V. and the board of the MaFAT Student Club, numerous students as well as representatives from business and academia attended the event.

Following a brief welcome and introduction, the MaFAT Research Award 2025 was presented. The award went to Felix Fritsch for his paper “Responding to Climate Change Crises: Firms’ Tradeoffs” (forthcoming in the Journal of Accounting Research, together with Qi Zhang and Xiang Zheng). Fritsch, who joined via Zoom from Michigan, provided an insightful overview of his research.

Panel Discussion: Uncertainties from the Trump Administration – Impacts on Markets, Accounting, and Taxation

The event continued with a panel discussion featuring Dr. Michael Tervooren (PwC), Dr. Ralf Ulrich Braunagel (PwC), Dr. Marcus Brocard (Deloitte), and Dr. Daniel Klein (Heidelberg Materials), moderated by Prof. Dr. Christoph Spengel. The panel explored, from various perspectives, the economic and regulatory uncertainties currently arising from the U.S. administration.

A central topic was tariffs. The current U.S. trade policy marks a departure from a rules-based system that had provided stability for decades. According to the experts, this system has been “completely overturned” over the past nine months – with each country acting in its own interest, driven primarily by the U.S. Industries particularly affected include automotive, chemicals, and pharmaceuticals, where German companies have a strong presence.

These developments make business decisions considerably more difficult: How can a business case be calculated when tariff rules can change overnight? Corporate transactions are also increasingly shaped by this unpredictability. Companies must learn to operate under constantly changing conditions.

Opportunities in Uncertainty

Despite the challenges, the panelists also identified opportunities. Europe can position itself as a stable and reliable market. Many investors view the continent as a “safe haven,” while the U.S. and Asia are considered more volatile.

The recently announced €500 billion investment to strengthen Germany’s business environment was highlighted as a strong signal of investment readiness.

“We must learn to deal with uncertainty – and use it as an opportunity,” Prof. Spengel concluded. Companies can thereby strengthen their competitiveness and further promote Europe as a secure investment location.