German machinery sector demands US tariff exemption as exports slump

German machinery producers sounded the alarm on Thursday after figures showed exports to the United States dropped by almost 10% in the first nine months of 2025.

The data from the Association of German Mechanical and Plant Engineering (VDMA) shows that US President Donald Trump's aggressive tariff policy has had a significant impact on exports.

VDMA official Oliver Richtberg said the European Commission "must make it clear that European machinery is a key driver of American production, US reindustrialization, and exports."

"EU machinery and equipment products must therefore be exempted from American steel and aluminium tariffs," he argued.

Over the first three quarters of the year, Germany's machinery and plant engineering sector exported €147.9 billion ($170.5 billion) in goods, down 3.1% year on year. Adjusted for price increases in real terms, the decline was as much as 4.6%.

The figures also suggest that the European Union's trade deal with Washington, agreed in late July, failed to produce a boost for the sector, with third-quarter exports recording a decline of 5.3%.

Exports to China, Germany's second most important market for machinery, were also disappointing, the VDMA said.

A brighter note was provided by the German electrical sector, which saw exports rise 9.6% in September according to data from the German Electro and Digital Industry Association (ZVEI).

Exports over the first nine months of the year totalled €190.5 billion, an increase of 3.4 per cent over the same period of 2024.