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Home » Business » Tariff-hit German exports to the US decline sharply, analysis finds

Tariff-hit German exports to the US decline sharply, analysis finds

December 22, 2025
in Business
Reading Time: 1 min read
6.3 million people work for low wages in Germany

FILED - Coins of various euro denominations are scattered on a table, including one and two euro and cent pieces. Photo: Fernando Gutierrez-Juarez/dpa

BERLIN (DPA, CONVERSEER) – German exports to the US declined sharply in the first three quarters of 2025 as a result of significantly increased tariffs, according to an analysis published on Monday.

The German Economic Institute (IW) said the automotive, chemical and mechanical engineering sectors were particularly affected.

The value of exports to the US fell by 8% compared with the same period last year, the institute said.

By contrast, exports across the Atlantic had increased by an average of 5% per year between 2016 and 2024.

Almost 70% of the decline in exports was attributable to the automotive, chemical and mechanical engineering sectors.

The automotive industry took the hardest hit, as exports of passenger cars and car parts fell by around 15% in the first three quarters.

READ ALSO: Researchers survey gloomy outlook among most German companies

One important reason for the decline in mechanical engineering exports is the particularly high US tariffs on steel and aluminium. These tariffs currently stand at 50%.

In the chemical sector, the IW said lower production levels in Germany, partly due to higher energy prices, also likely contributed to the decline in exports.

Tags: GermanyUnited States

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