German car exports to the United States fell sharply in the first three quarters of 2025. The automotive sector became the hardest-hit branch of German industry under U.S. tariffs. The decline followed the introduction of a 15% baseline tariff on European cars in August. German engineering and chemical exports also faced reductions. Experts note that this trend may continue for the foreseeable future.
Drop in German Car Exports
German car exports to the United States fell by almost 14% in 2025. Among the worst-hit brands were Volkswagen, BMW, and Mercedes-Benz. It was reduced due to the imposition of tariffs by the U.S. that reduced the growth in trade in the past. The automotive companies in Germany are now experiencing increased expenses in exporting to the U.S. Exporters have been finding it hard to adapt to the new tariff regime.
The tariff agreement between Washington and Brussels set the rate at 15%. This rate is lower than Trump’s original plan of 25% plus a 2.5% existing levy. However, the reduced rate still caused substantial drops in shipments. Analysts observed that the automotive sector remains vulnerable to changes in U.S. trade policy. Companies are adapting by adjusting production and export plans.
Engineering and Machinery Exports Also Affected
In the first quarter of 2025, the exports of German engineering to the United States declined by 9.5%. The U.S. tariff on steel and aluminium products that was 50% added up to more expenses in machinery exports. German companies recorded problems with delays in their shipments and increased costs of production. Tariffs and global supply chain problems lowered the growth of exports.
Engineering companies are looking for ways to maintain market share despite higher tariffs. Some firms are diversifying production to reduce dependence on the U.S. market. Observers noted that machinery and industrial goods remain highly sensitive to trade policy changes. The sector is actively seeking alternatives in Europe and Asia for export opportunities.
Chemical Industry and Overall Export Trends
The German chemical industry saw exports to the United States decline by 9.5%. The report said tariffs were not the only factor, citing higher energy prices in Germany. Lower production levels contributed to slower shipments. Exporters are considering operational adjustments to manage costs and sustain output.
Across all sectors, German exports to the U.S. fell by 7.8% year-on-year. This contrasts with average growth of nearly 5% from 2016 to 2024. Study author Samina Sultan stated that U.S. import tariffs are unlikely to return to previous levels soon. She described the situation as a new normal for German exporters. Companies are encouraged to diversify markets and reduce dependence on U.S. demand.
