The export-driven German machinery manufacturing and mechanical engineering industry is suffering badly from US import restrictions, its association VDMA reports in its latest annual review.
The punitive US tariffs on steel and aluminium will likely affect around 56% of German machinery exports to the US in the near future, Kallanish hears from the federation. According to a new VDMA survey of nearly 400 member companies, 47% of companies report a decline in orders from the US since last April. Two-thirds of respondents expect a drop in sales due to the tariffs.
“What’s more, it’s not just about the absolute level of the tariffs, but also about the associated bureaucratic burden, such as correctly declaring the value of steel and aluminium,” says VDMA president Bertram Kawlath. “Only around a quarter of our companies believe they can meet the American requirements. The tariffs are absolutely counterproductive for both sides!”
In September 2025, German machinery exports amounted to €16.3 billion ($19 billion), marking a 3.4% decline compared to the previous year. Adjusted for price changes, this corresponds to a real decrease of 4.7%. To the USA, exports fell by 10.8% in September. The USA accounts for more than 12% of German exports, rendering it still the largest single foreign market for German mechanical engineering, followed by China with 8% and France with 6%.
As a gentle compensation for the trade issues with the USA, exports to other EU members turned out more favourable than previously assumed. These were still down by 2.2% y-o-y in the first three quarters but have recently gained momentum. To the eurozone, especially, the decline was only 1.1%, VDMA notes.
