S. import duties and industry-specific issues.
According to the analysis, the total volume of German exports of commodities to the United States decreased, approximately reflecting the strengthening of tariff barriers and subsequent weak demand in key industries.
The report highlights that the export value of automobiles and automotive parts has plummeted by almost 14 percent, while exports of machinery and chemicals have also shown significant declines of about 9.5 percent each, highlighting the broad impact of the tariff regime. These three sectors together account for more than two-thirds of the total decline in exports to the U.
S. market. Export levels for most major sectors remain close to or below 2022 levels, indicating a significant decline in trade flows after years of consistent growth.
The report attributed the decline in exports mainly to tariff policies on U.
S. imports, including 50 percent duties on many steel and aluminum products for machinery exports and increased tariffs on automobiles, which created a new norm in transatlantic trade in goods. If tariff levels do not decrease, the study warns that a sustained recovery in German exports to the United States is unlikely in the near future.
The IW analysis highlights the challenges faced by German industry in maintaining global market share in the face of protectionist trade policies, and suggests that further adjustments to export strategies and market diversification may be needed to counteract the downturn.
