Headlines
German auto exports hit hard by Trump tariffs, study shows
Published by Global Banking & Finance Review®
Posted on December 22, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 22, 2025
2 min readLast updated: January 20, 2026
German car exports to the US fell by 14% in 2025 due to Trump's tariffs. Engineering and chemical sectors also saw declines.
BERLIN, Dec 22 (Reuters) - German car exports to the United States slumped by almost 14% in the first three quarters of 2025, making it the hardest-hit branch of German industry in U.S. President Donald Trump's trade war, according to a study seen by Reuters on Monday.
Under an agreement between Washington and Brussels, the U.S. set a 15% baseline tariff on cars from Europe from August 1 - significantly less than Trump's initial rate of 25% on top of a 2.5% existing levy.
German engineering companies have also struggled under the tariff regime, with the study showing exports in that sector to the U.S. declining by 9.5% in the first nine months of 2025.
Machinery exports are subject to a 50% U.S. tariff on steel and aluminium products.
The chemical industry also saw exports to the country's top export market decline by 9.5%, although the report said this could not be blamed solely on tariffs.
"Other factors are likely to have played a role in the case of chemical products, such as lower production in Germany due to higher energy prices," it said.
Across all sectors, German exports to the U.S. were down 7.8% year on year over the three quarters - following average growth of nearly 5% in the comparable periods of 2016 to 2024.
"Since it must currently be assumed that U.S. import tariffs will not return to pre-Trump administration levels in the foreseeable future, a significant recovery in German exports to the U.S. is unlikely," study author Samina Sultan said, referring to a "new normal" for German exporters.
(Reporting by Rene Wagner and Rachel More; Editing by Hugh Lawson)
The automotive industry encompasses the design, development, manufacturing, marketing, and selling of motor vehicles. It includes a wide range of companies and organizations involved in the production of automobiles.
An export is a good or service sold by one country to another. Exports are an essential part of international trade and contribute to a country's economy by generating revenue.
A trade war occurs when countries impose tariffs or other trade barriers on each other in response to trade policies. This can lead to increased prices for consumers and strained economic relations.
Tariffs can significantly impact exports by increasing costs for foreign buyers. This may lead to a decrease in demand for exported goods, affecting the overall trade balance of a country.
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