Machinery exports fall by 1.8 percent in 2025

A total of 198.5 billion euros worth of machinery and equipment was exported from Germany to the world. This means that exports actually fell slightly more than production, which shrank by 2.6% in real terms according to preliminary calculations.

"The year was characterized by difficult trade policy conditions. The US tariffs, increasing protectionism and the associated uncertainty on the global markets hit the export-oriented mechanical and plant engineering sector hard - and present companies with major challenges," comments VDMA Chief Economist Dr. Johannes Gernandt on the annual export figures.

Exports to the countries of the European Union developed slightly better than average, but were still slightly below the previous year's level overall with a nominal decline of 0.3%. The differences between the EU countries were significant in some cases. Italy showed a noticeable dynamic with a strong increase of 9.5%, while France recorded a year-on-year decline of 4.1%. With an export share of 44.7%, the EU remained the most important sales region for the German mechanical and plant engineering industry. Among the individual sales markets, the USA remained at the top of the rankings (export share 12.7%), followed by China (8.2%), France (6.6%) and Italy (5.1%). The United States was particularly in the spotlight due to its erratic customs policy. Unsurprisingly, exports to the USA shrank significantly by 8.0% over the course of the year. The appreciation of the euro against the dollar is likely to have exacerbated the decline. The picture for China was only marginally better. The structural problems continued here and the year-on-year decline amounted to 8.2%.

While there were declines in exports in all major regions, there were also a few rays of hope. In Europe, both Italy and Spain were able to impress with a significant increase of 8.4%. Exports to Africa (up 9.2%), the Mercosur states (up 5.3%) and the Middle East (up 7.1%) also increased significantly.

Outlook for 2026

Trade and geopolitical uncertainties are likely to persist and continue to put machinery exports under noticeable pressure in the current year. In the US, tariffs on steel and aluminum derivatives in particular, as well as the threat of further tariff shocks, continue to weigh on business. In China, exports have been declining for many years and this trend is likely to continue. The stronger euro is also likely to put the brakes on exports. There is hope in the European domestic market, which is supported by positive incoming orders from the euro partner countries. "Overall, the global economic climate is becoming rougher. Politicians must therefore ratify the free trade agreements with Mercosur, India and Indonesia as quickly as possible in order to secure prosperity and jobs in Germany and Europe," concludes VDMA Chief Economist Dr. Gernandt.