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Customs dispute with the USA: German economy falters after Trump's deal!
The 100-day check on the EU-US customs agreement shows growing pressure on the German economy and sometimes strong criticism.
Customs dispute with the USA: German economy falters after Trump's deal!
On November 4th, 2025, the European Union economy will look at the consequences of the customs agreement between EU Commission President Ursula von der Leyen and US President Donald Trump agreed in Scotland on July 27th this year. People's voice reports that the agreement sets a base tariff of 15 percent for most EU imports to the US.
However, after 100 days since the treaty, reactions within the EU are divided. Germany in particular, as a strong exporter to the USA, is feeling the pressure: exports to the USA fell by a whopping 20 percent in August compared to the previous year. Dirk Jandura, president of the foreign trade association BGA, notes that many traders are refraining from doing business with the USA.
The automotive industry in focus
The agreement initially seemed to benefit the automotive industry, as tariffs on European cars fell from 27.5 to 15 percent. But VDA President Hildegard Müller warns that this rate still represents a high hurdle - especially compared to previous tariff rates of just 2.5 percent. On November 1st, new additional tariffs on steel, aluminum and commercial vehicles came into force, which pose additional challenges for the automotive industry.
The deal also comes with considerations: in order to enable the lower tariff rate for European vehicles, US cars must be exported to the EU duty-free. There has so far been no wave of price increases in retail due to US tariffs, as the implementation of the deal at the European level is still in its infancy.
Other industries under pressure
The impact of the tariff agreement is not limited to the automotive industry. The mechanical engineering association VDMA is critical of the additional burden of an additional 50 percent tariff on numerous products. The chemical industry recorded a 2.9 percent decline in sales from January to August 2025, and the new US tariffs are making sales even more difficult. The pharmaceutical industry is also facing uncertain times; The US tariffs on medicines should have an upper limit of 15 percent, which, according to the VFA Germany, predicts a deterioration in the business situation for 2026.
Legal disputes in the USA
There is resistance to Trump's tariff policy in the USA. Several states have filed lawsuits seeking a reassessment of the tariffs. There are two cases before the US Supreme Court that are intended to clarify whether the president can impose tariffs in a state of emergency. The next hearing on this is scheduled for November 5th and could have a decisive influence on the direction of future trade relations.
While the economic situation in the EU remains tense, all eyes are on developments in the USA and their possible impact on the coming winter. We can only hope that companies in Europe quickly find solutions to adapt to the new reality.
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Developments in global trade are rapid, and it remains to be seen how these will affect the German and European markets.