US Market Becomes a Prime Destination for German Mechanical Engineers
By Karolin Rothbart, Uncensored & Straightforward
Warning issued over potential blood clot risk
The United States is escalating as a sought-after hotspot for German mechanical engineers. The industry's exports to this nation have witnessed an impressive surge in the recent years, surging from 11.5% in 2021 to a robust 13.7% in the first three quarters of the present year. On the flip side, exports to China have experienced a consistent decline, a probable consequence of endeavors aimed at lessening China's influence and staving off its economic and hegemonic aspirations.
German mechanical engineers are eyeing the US market even more avidly in the upcoming future. However, it's advisable to cast a wider net and not overlook other promising regions.
The escalating exports of mechanical engineering products from Germany to the US are fueled by several compelling factors and can generate opportunities in other ripe markets worldwide.
Key Factors in the Rising Exports to the US
1. Trade Policies and Tariffs
- The US has implemented a tough trade policy, imposing elevated import tariffs, reaching an average of 25.5% globally in early 2025—the highest since 1890[4]. This robust tariff regime has presented difficulties for German exporters, risking potential economic turbulence in Germany due to reduced export volumes[1].
- Despite these tariffs, some German mechanical engineering corporations have reported a slight upswing in order intake and backlog, signaling resilience and enduring demand from the US market[2]. However, the trade tensions and tariffs breed considerable uncertainty and risk.
2. Market Demand and Sector Resilience
- German mechanical engineering thrives as a robust sector, boasting stable order books and production growth. For example, industry production in Germany rose by 3.0% month-on-month in March 2025, underscoring the sector's underlying industrial strength[3].
- A survey by VDMA’s Additive Manufacturing Working Group demonstrates optimism among German companies in advanced manufacturing technologies, including 3D printing, with 64% anticipating international sales growth, implying export potential, even in the face of tariffs[5].
- Companies reveal adaptability and flexibility in a dynamic environment, which fosters continued export growth, although with challenges[5].
3. Sector-specific Performance
- Leading companies such as Koenig & Bauer have witnessed a slight year-on-year rise in orders in spite of global uncertainties, attributed to strategic initiatives and new technologies, reinforcing continued export activities[2].
- The mechanical engineering sector displays a diversified and technologically advanced profile, lending it some resistance to tariff-related pressures.
Potential Opportunities in Other Markets
1. EU and Neighboring Markets
- Given the complex US tariff landscape, German mechanical engineering companies might increasingly target the tariff-free EU internal market and neighboring nations with favorable logistics. The EU's single market continues to represent an enticing opportunity due to reduced trade friction.
2. Emerging Markets and Asia
- As global economic progress slows, projected at +2.3% in 2025[4], emerging markets, particularly in Asia, persist in industrializing and upgrading their manufacturing infrastructure, potentially increasing demand for German mechanical engineering exports.
- Countries with lower tariff barriers or bilateral trade agreements with the EU or Germany may gain strategic significance.
3. Additive Manufacturing and New Technologies
- The burgeoning realm of additive manufacturing (industrial 3D printing) holds promise for expansion. VDMA's survey suggests robust growth expectations domestically and internationally in this sector[5].
- By tapping into their technological prowess in advanced manufacturing technologies, German companies can claim a foothold in niche markets across the globe.
Conclusion
- Despite US import tariffs and the associated uncertainties, German mechanical engineering exports to the US have found a way to be remarkably resilient, reinforced by solid order backlogs, adaptability, and technological innovations.
- Tariff-induced challenges represent risks, but companies remain optimistic about international growth.
- Opportunities are likely to expand in other regions such as the EU, emerging Asian markets, and industrial sectors like additive manufacturing, where Germany enjoys competitive advantages.
This insight points towards a dual strategy: maintaining the critical US market while expanding into other promising global regions with more favorable trade conditions and growth potential.
- The resilience of German mechanical engineering exports to the US, despite tariff challenges, can also fuel opportunities in other global markets with favorable trade conditions, such as the European Union and emerging Asian countries.
- As the demand for advanced manufacturing technologies like 3D printing grows internationally, German mechanical engineering companies can leverage their technological strengths to penetrate niche markets worldwide, which complements the continuing focus on the US market.
