Overview
- Exports of German machines and plants fell 1.8% to €198.5 billion in 2025, a 3.3% decline in real terms, while production contracted 2.6% for a third straight year, according to VDMA.
- Sales to the United States dropped 8.0% to about €25.2 billion and exports to China fell 8.2%, deepening the sector’s export weakness.
- VDMA’s chief economist warned that US tariffs, rising protectionism and global uncertainty are hitting the industry, highlighting steel and aluminum duties and the newly announced 15% worldwide US tariff.
- Select markets provided relief, with exports rising to Italy and Spain (each +8.4%) and increasing to Africa (+9.2%), Mercosur (+5.3%) and the Middle East (+7.1%).
- An IW analysis of official data shows Germany’s China trade gap widening as exports to China fell 9.7% to €81.3 billion and imports rose 8.8% to €170.6 billion, with auto exports down over 54% since 2022 to €13.6 billion and the machinery surplus shrinking to about €2.8 billion.