US Tariffs Hit German Auto Sector: Trade Surplus Plummets 30% in Q1 2026
Germany’s long-standing trade surplus with the United States shrank dramatically in the first quarter of 2026, driven down by heavy US import tariffs introduced last year.
Data released by the Federal Statistical Office (Destatis) shows Germany’s goods surplus with the US dropped 30.5% to €12.4 billion, down from €17.8 billion during the same period in 2025. Total exports to the US plummeted 12.1% to €36.2 billion, while American imports into Germany edged up 1.9% to €23.8 billion.
The slump heavily impacts Germany’s vital automotive sector. Following the 2025 US tariff hikes on European cars, German exports of motor vehicles and parts plunged 28.4% to €6.5 billion. Meanwhile, US automotive imports into Germany rose 13.2% to €1.5 billion. This slashed Germany’s automotive trade surplus by 35.5% to €5.0 billion. Purely electric vehicles suffered the sharpest blow, with German exports crashing 65.7% to just €0.6 billion.
Despite the steep decline, vehicles and machinery remain Germany’s primary export drivers. Machinery exports fell a moderate 6.4%, yielding a €4.9 billion surplus. Other key sectors also saw reduced surpluses, including pharmaceutical products at €3.4 billion (down 18.7%) and electrical equipment at €1.9 billion (down 5.3%).
Conversely, Germany relies heavily on US energy, recording an import surplus for mineral fuels. The trade deficit for American crude oil and natural gas hit €3.0 billion, while coal and coke products added another €0.6 billion to the deficit.
The sharp downturn marks a major shift in trade dynamics between the two nations, interrupting more than three decades of robust German trade dominance.