A recent study reveals a sharp decline in German exports to the United States, with the auto industry suffering the most significant impact amid ongoing US tariffs. German auto exports to the US fell by nearly 14 per cent in the first three quarters of the year, highlighting the pressure caused by trade barriers under President Trump’s administration.

This decline comes despite a revised agreement between Washington and Brussels, which set baseline tariffs on automobiles at 15 per cent. Previously, the US had imposed a 25 per cent tariff on autos, in addition to the existing 2.5 per cent levy.

Beyond the automotive sector, German engineering firms also experienced difficulties, with exports to the US dropping by almost 10 per cent in the same period. Machinery exports related to steel and aluminium face even harsher conditions, with tariffs as high as 50 per cent applied.

Samina Sultan, the study’s author, emphasised that US import tariffs are unlikely to return to levels seen before the Trump administration in the foreseeable future. She warned that a significant recovery in German exports to the US is improbable, and this situation will likely become the “new normal” for German exporters. The ongoing trade war suggests extended challenges not only for Germany but for many countries worldwide.

For forex traders, this study underlines the impact of geopolitical tensions and trade policies on currency flows and economic performance. The continued tariffs add pressure on the German economy, which faces stagflation concerns heading into 2026, potentially influencing the euro’s strength and trading opportunities in related currency pairs.

Original Source: Justin Low of investinglive.com