The German machinery industry is facing a serious export crisis following the introduction of restrictive tariffs by the US administration. Data for 2025 indicates a clear regression in equipment sales to the American market, which industry associations describe as a blow 'to the very core' of the sector. Paradoxically, at the same time, the German electrical engineering sector managed to achieve record foreign sales results, showing greater resilience to trade barriers.

Crisis in machinery exports

Sales of German machinery to the USA recorded a sharp decline in 2025 due to high tariff duties.

Electro industry record

The electrical engineering sector, contrary to market trends, managed to break a historic export record despite barriers.

Warnings from associations

Industry organizations warn that the current US trade policy is striking at the foundations of German industry.

The German machinery construction sector, a traditional pillar of its economy, is grappling with the severe effects of Donald Trump's tariff policy. The latest reports from industry organizations indicate that 2025 brought a significant drop in the volume of goods shipped to the United States. Experts point out that American tariffs have directly translated into reduced competitiveness of German products, forcing local companies to revise production and investment plans. This situation is particularly difficult for medium-sized enterprises, which constitute the backbone of the German Mittelstand, for whom the US market had been a key sales destination. Completely different sentiments prevail in the electrical engineering industry, which, despite identical regulatory hurdles, managed to break another export record in 2025. This divergence likely stems from the higher specialization of electrical products and their indispensability in the American process of modernizing power grids and digitalization. Nevertheless, the overall picture of German industry is becoming increasingly ambiguous, and the growing protectionism in Washington is forcing Berlin and Brussels to seek new trading partners and alternative sales markets in Asia and Latin America. Mutual trade relations between Europe and the USA have gone through numerous turbulences since the establishment of the World Trade Organization in 1995. The biggest disputes so far have concerned subsidies for aviation (Boeing vs Airbus) and steel and aluminum, which has repeatedly led to punitive tariffs being imposed on both sides of the Atlantic.The current trade tensions could permanently alter the structure of German exports. Representatives of the VDMA association warn that without systemic solutions at the diplomatic level, further erosion of the position of German machinery manufacturers in the US market is inevitable. The industry also fears that a potential escalation of the trade war could lead to retaliation from the European Union, which would close a spiral of mutual accusations and further restrictions on the flow of goods and services. „Trumps Zölle treffen deutsche Maschinenbauer ins Mark” (Trump's tariffs hit German machinery builders to the core) — Machinery industry representative

Mentioned People

  • Donald Trump — US President whose tariff policy has become a major burden for German exports.