Germany’s exports to the United States declined significantly during the first three quarters of 2025, reflecting the growing impact of higher US import tariffs, according to a new report by the German Economic Institute (IW).
German goods exports to the US fell by around 7.8% year on year in January–September 2025, reversing the average annual growth of roughly 5% recorded between 2016 and 2024. The downturn is largely attributed to elevated US tariffs and weakening demand in key industrial sectors.
The steepest decline was seen in automobiles and auto parts, with export values down nearly 14%, while machinery and chemical exports each fell by about 9.5%. Together, these sectors accounted for more than two-thirds of the overall drop in exports to the US.
IW noted that 50% duties on many steel- and aluminum-related products and higher tariffs on cars have reshaped transatlantic trade flows. The institute warned that a sustained recovery is unlikely unless tariff levels are reduced, urging German exporters to diversify markets and adjust trade strategies.
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