Europa Posted on 2025-12-22 10:29:00

Impact of tariffs on Germany - Auto exports hit hard

From Dorian Koça

Impact of tariffs on Germany - Auto exports hit hard

German car exports to the United States fell by almost 14% in the first 9 months of 2025, making it the hardest-hit branch of German industry in President Donald Trump's trade war.

Under an agreement between Washington and Brussels, the US imposed a base tariff of 15% on cars from Europe starting August 1, significantly less than the initial rate of 25%, in addition to an existing tax of 2.5%.

German companies have also struggled under the tariff regime, with the study showing that exports in that sector to the US fell by 9.5% in the first nine months of 2025.

Machinery exports are subject to a 50% US tariff on steel and aluminum products. The chemical industry also saw exports fall by 9.5%.

"Other factors may have played a role in the case of chemical products, such as lower production in Germany due to higher energy prices," experts say.

Across all sectors, German exports to the US fell by 7.8% year-on-year, after an average increase of almost 5% in the comparable periods from 2016 to 2024.

"Since it must currently be assumed that US import tariffs will not return to pre-Trump administration levels in the foreseeable future, a significant recovery of German exports to the US is unlikely," said the study's author, Samina Sultan, referring to a "new normal" for German exporters.

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