German Auto Exports Hit Hard by Trump Tariffs

Hit by Trump Tariffs: German car exports to the United States slumped by almost 14 per cent in the first three quarters of 2025, making it the hardest-hit branch of German industry in US President Donald Trump's trade war, according to a study seen by Reuters on Monday. Under an agreement between Washington and Brussels, the US set a 15 per cent baseline tariff on cars from Europe from August 1 - significantly less than Trump's initial rate of 25 per cent on top of a 2.5 per cent existing levy.

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

Machinery exports are subject to a 50 per cent US tariff on steel and aluminium products.

The chemical industry also saw exports to the country's top export market decline by 9.5 per cent, 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 US were down 7.8 per cent year on year over the three quarters - following average growth of nearly 5 per cent in the comparable periods of 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 in German exports to the US is unlikely," study author Samina Sultan said, referring to a "new normal" for German exporters.

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