The production line of the VW ID.3 at the Volkswagen factory in Dresden, Germany. (Krisztian Bocsi/Bloomberg)
December 22, 2025 10:31 AM, EST
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BERLIN — German exports to the U.S. declined sharply in the first three quarters of 2025 as a result of significantly increased tariffs, according to an analysis published Dec. 22.
The German Economic Institute (IW) said the automotive, chemical and mechanical engineering sectors were particularly affected.
The value of exports to the U.S. fell by 8% compared with the same period last year, the institute said.
By contrast, exports across the Atlantic had increased by an average of 5% per year between 2016 and 2024.
Almost 70% of the decline in exports was attributable to the automotive, chemical and mechanical engineering sectors.
The automotive industry took the hardest hit, as exports of passenger cars and car parts fell by around 15% in the first three quarters.
One important reason for the decline in mechanical engineering exports is the particularly high U.S. tariffs on steel and aluminum. These tariffs currently stand at 50%.
In the chemical sector, the IW said lower production levels in Germany, partly due to higher energy prices, also likely contributed to the decline in exports.
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