Tariff turmoil weighs on German machinery exports in H1

FRANKFURT: German exports of machinery were down by 3.4% year-on-year in the first half of 2025, amid pressure from global trade conflicts, according to industry figures released on Thursday.
In the first six months of the year, German machinery and plant engineering manufacturers exported goods totalling €98.3 billion ($114.5 billion), the German Mechanical Engineering Industry Association (VDMA) said.
Adjusted for prices, the decline was as much as 4.9% compared to the same period last year. Second-quarter results were notably influenced by the trade war unleashed by US President Donald Trump, according to the VDMA.
Repeated threats of new tariffs as well as uncertainty about the outcome had a significant negative impact on business, it said. Exports to the US, the most important trading partner for German machinery producers, fell by 9.5% compared to the same period last year.
Chief VDMA economist Johannes Gernandt expects the conflict to continue to have a negative impact in the third quarter due to the ongoing uncertainty. While manufacturers are looking for new markets to compensate for the losses, exports to European nations were also down by 3.7% in the first six months of the year.
'However, the increase in orders received in recent months from eurozone countries gives hope for a positive development in exports to this important sales region,' said Gernandt.
Meanwhile, exports were up to MERCOSUR states as well as to the Near and Middle East, according to VDMA. — dpa