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US Tariff Threats Trigger 6% Drop in German Machinery Orders

VDMA chief economist calls on the government to strengthen Germany’s industrial base after US tariff threats dented orders.

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Overview

  • Real new orders for machinery and plant engineering fell by 6% in April 2025 compared with a year earlier.
  • Domestic demand dropped 4% while foreign orders fell 7%, with non-euro area markets seeing a 13% slump.
  • Despite the April setback, the sector recorded a modest 1% rise in orders across the first four months of 2025.
  • VDMA chief economist Johannes Gernandt attributes the downturn to President Donald Trump’s tariff threats, which have heightened global investment uncertainty.
  • The industry body is pressing Berlin to follow through on its commitments to bolster Germany’s competitiveness and mitigate tariff impacts.