German auto exports reportedly hit the hardest by US tariffs

German Auto Exports Hit Hard

A recent study reveals that German auto exports to the US have fallen by nearly 14% in the first three quarters of 2023, making it the hardest-hit industry due to tariffs imposed by President Trump.

Tariff Situation

While a 'better' agreement was reached specifying a 15% baseline tariff on autos, compared to an initial 25%, the adaptation to this new tariff regime has proven difficult for the export industry. This decline in exports also extends to the engineering sector, with exports down nearly 10% in the same timeframe.

New Normal

According to study author Samina Sultan, it is anticipated that US import tariffs will not revert to pre-Trump levels in the near future, indicating that a significant recovery for German exports is unlikely. This state of affairs is termed the ‘new normal’ for exporters, affecting not just Germany but many countries globally.

Economic Implications

The pressure that tariffs apply on the German economy is crucial to note, particularly considering the stagflation pressures as we move towards 2026, raising concerns over future economic growth in Germany.