Trump brings German auto industry to its knees – Collapse in exports to the USA

German car exports to the United States collapsed by nearly 14% in the first nine months of 2025, making the sector the biggest loser in US President Donald Trump's trade war, according to a study cited by Reuters.

Tariffs and the blow to German cars

As part of an agreement between Washington and Brussels, the USA imposed a 15% base tariff on European cars starting August 1, a rate significantly lower than the initial 25% rate announced by Trump, in addition to an existing 2.5% tariff. Despite the reduction compared to the initial threats, the blow to the German automotive industry has been heavy, with the sector recording the largest drop in exports to the American market.

Engineering and heavy industry under pressure

German mechanical engineering companies also found themselves in a precarious position under the new tariff regime. The study shows that exports in this specific sector to the USA decreased by 9.5% in the first nine months of 2025. Machinery exports are further burdened by a 50% tariff imposed by the USA on steel and aluminum products, further increasing costs and reducing competitiveness.

Chemical industry: Decline with multiple causes

The chemical industry also recorded a decrease in exports to Germany's largest export market, with a drop of 9.5%. However, the report points out that this decline cannot be attributed exclusively to tariffs. As characteristically stated, "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."

Negative shock for exports

Overall, German exports to the United States decreased by 7.8% on an annual basis in the nine-month period, following an average increase of nearly 5% in corresponding periods from 2016 to 2024.

"Given that it must now be assumed that American import tariffs will not return to pre-Trump administration levels in the near future, a substantial recovery of German exports to the USA is unlikely," stated the study's author, Samina Sultan, referring to a "new normalcy" for German exporters.

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