German car exports to the United States plunged nearly 14% in the first three quarters of 2025, marking the steepest decline of any German industry caught in U.S. President Donald Trump’s

trade war, according to a study shared with Reuters.

The slump follows the introduction of new U.S. auto tariffs on European vehicles. Under a deal between Washington and Brussels, the United States imposed a 15% base tariff on European car imports beginning Aug. 1—far below Trump’s original plan to tack on an additional 25% to the existing 2.5% duty.

While the auto sector bore the brunt of the measures, other major German industries also took a hit. Engineering exports to the U.S. dropped 9.5% over the same nine-month period, the study showed, pressured by steep duties on steel and aluminum products, which face a 50% tariff.

The chemical sector recorded a similar 9.5% decline. However, researchers cautioned that tariffs alone may not explain the fall. Higher energy prices in Germany and lower domestic production likely added to the industry’s strain.

Overall, German exports to the United States fell 7.8% year-on-year in the first three quarters of 2025—a sharp reversal from the average annual growth of nearly 5% seen between 2016 and 2024.

Study author Samina Sultan warned that a turnaround may be a long way off. With little expectation that U.S. import tariffs will return to pre-Trump levels anytime soon, she said German exporters should prepare for a “new normal” in the transatlantic trade landscape. Photo by Klaus Nahr, Wikimedia commons.