The German engineering industry recorded a slight decline in exports in the first half of 2026, as geopolitical tensions, U.
S. tariff policy and persistently weak demand in China continued to put pressure on foreign trade, according to the German Association of the Engineering Industry VDMA.
Exports of machinery and equipment from Germany decreased by 0.8 percent year-on-year in nominal terms to 99.3 billion euros in January-June. Taking into account price adjustments, exports decreased by 2.5%. At the same time, imports of machinery and equipment increased by 2.2% year-on-year to 47.9 billion euros.
High figures in June limit the decline in the first half of the year
Anke Uhlig, an economic expert at VDMA, said that relatively stable export activity in the second quarter, combined with a 6.8% year-on-year increase in June, limited the decline recorded in the first half of the year.
However, geopolitical tensions, the US tariff policy and the continued weakness of business relations with China continue to put significant pressure on the sector.
,Exports to China decreased by 13.8%. ,
,German machinery exports to the United States increased by 0.5% year-on-year in the first half of the year, despite the negative impact of the US tariff policy and the strong euro exchange rate. On the contrary, exports to China declined sharply by 13.8 percent, which is a continuation of the weakness seen in this market in recent years. Export
Exports to the European Union increased by 1.3 percent, while the bloc retained its position as the largest sales region for German engineering with a share of 45.9 percent of total exports. Among the main destinations in the EU, exports to France increased by 3.6 percent and to the Netherlands by 5.1 percent, while shipments to Italy decreased by 0.5 percent. In other EU countries, particularly significant growth was recorded in Denmark and Sweden - by 22.5% and 11.4%, respectively. Outside of Europe, exports to India increased by 11.1%, while shipments to Canada increased by 10%.
The United States remains Germany's largest market for equipment exports with a share of 13.1%, followed by China with 7.1% and France with 6.9%. Tariffs on steel and aluminum
Influence the prospects
The VDMA expects uncertainty to remain elevated in the second half of 2026. According to the association, US tariffs on steel and aluminum derivatives, as well as the possibility of further tariff measures, create additional pressure on business with the United States.
At the same time, the decline in exports to China, which has been ongoing since 2022, is expected to persist amid weak demand and growing competitive pressure from Chinese suppliers in international markets.
Weak volume of orders in the EU from the eurozone countries