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Two-thirds of German engineering firms expect tariff hit, lobby finds
Published by Global Banking and Finance Review
Posted on December 9, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 9, 2025
2 min readLast updated: January 20, 2026
Two-thirds of German engineering firms expect revenue hits from US tariffs, with nearly half estimating losses over 10%, according to a VDMA survey.
BERLIN, Dec 9 (Reuters) - Two-thirds of German engineering companies expect a revenue knock due to U.S. tariffs, with almost half estimating such a revenue hit at more than 10%, according to a survey by the VDMA sector lobby.
According to the survey of nearly 400 member companies, almost half (47%) reported a decline in orders from the United States since April.
"It's not just about the absolute level of the tariffs, but also about the associated bureaucratic burden," said VDMA president Bertram Kawlath at the lobby's annual press conference on Tuesday.
"Only about a quarter of our companies believe they can meet the American requirements," he said in a statement, calling on German and EU leaders to make clear that tariffs are counterproductive.
However, tariffs are only one in a long list of challenges facing the sector, said the lobby.
A lack of genuine reform and overbearing bureaucracy is stifling domestic growth, while geopolitical crises, increasing trade restrictions, global customer uncertainty and Chinese competition are hampering the sector's ability to recover.
Kawlath said better business conditions in Germany and Europe would be the best way to counter this competition.
On that basis, the VDMA confirmed its forecast for a real production decline of 5% this year, although new data offer some hope for a slightly better outcome, and growth of 1% next year.
(Reporting by Miranda Murray; editing by Matthias Williams)
The VDMA, or Verband Deutscher Maschinen- und Anlagenbau, is the German Engineering Federation that represents the interests of the engineering industry in Germany.
Revenue is the total income generated by a company from its business activities, typically from the sale of goods and services before any expenses are deducted.
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