The study reportedly shows that German auto exports to the US declined by almost 14% in the first three quarters of the year, making it the hardest hit industry amid the tariffs imposed by US president Trump.

As a reminder, this comes despite a "better" agreement of 15% baseline tariffs on autos set out by Washington and Brussels. That as opposed to the initial 25% rate which was on top of the 2.5% levy previously.

Besides the auto sector, German engineering firms also struggled with exports to the US in that sector seen down almost 10% in the first three quarters of 2025. For some context, machinery exports are slapped with a 50% tariff rate when related to steel and aluminium products.

The author of the study, Samina Sultan, noted that:

"Since it must currently be assumed that US import tariffs will not return to ​pre-Trump administration levels in the foreseeable future, a significant recovery in German exports to the US is unlikely."

Adding that this is going to be the "new normal" for German exporters with the trade war set to prolong under Trump's administration. As such, this is just something that not only Germany but most countries across the globe have to get used to.

I would say that the report isn't the least bit surprising. And tariffs definitely do not help to ease the pressure on the German economy, which is facing stagflation pressures as we look towards 2026 now.

Source: Investing Live