Analysis shows tariffs sharply reduce German exports to U.S.

BERLIN, Dec. 22 (Xinhua) -- German exports to the United States fell sharply in the first three quarters of 2025, with automotive shipments down around 15 percent, as U.S. tariffs weighed on Europe's largest economy, according to a German Economic Institute (IW) analysis published Monday.

Overall German exports to the U.S. declined by nearly 8 percent year-on-year in the first nine months, ending years of steady growth. Between 2016 and 2024, exports had risen by an average of about 5 percent annually. The latest figures put German exports to the U.S. below their 2022 level.

The downturn was concentrated in Germany's core industrial sectors. Almost 70 percent of the decline came from automotive, chemical, and mechanical engineering industries, the IW reported. While automotive exports fell the most, mechanical engineering and chemical shipments each dropped by just under 10 percent.

High U.S. tariffs on steel and aluminum, currently at 50 percent, were a key factor behind the weakness in mechanical engineering exports, the institute said. Chemical exports were also affected by domestic factors, including lower production in Germany due to high energy prices.

With a swift rollback of Trump-era tariffs unlikely, Germany needs to diversify its trade ties, IW economist Samina Sultan said.

Germany should expand into new markets in South America, India and Indonesia, while reducing trade barriers within the European Union, she added. ■