The Trump administration’s tariff policy poses significant challenges for German exporters. Medium-sized enterprises that depend on US markets or are integrated into global supply chains are particularly affected.
Basic tariffs on all German exports, increased EU tariffs, and drastic special tariffs on individual industries have already led to noticeable economic burdens. While the Federal Appeals Court declared most Trump tariffs illegal on August 29, 2025, they remain in effect until the Supreme Court decision, which is not expected before October 14, 2025.
This legal uncertainty forces companies to make operational adjustments and examine legal circumstances. Enforcing potential refund claims and adapting supply contracts present complex legal challenges. Deadlines must be observed, complete documentation of payments must be maintained, and contract terms may need to be reviewed.
Well-founded legal advice is therefore essential. As an internationally active full-service law firm, Schlun & Elseven Rechtsanwälte comprehensively supports German exporters with all questions surrounding the Trump administration’s tariff policy and Germany. Our experienced attorneys examine your refund claims, advise on contract adjustments, and represent you both out-of-court and in court – throughout Germany and internationally.
Need legal guidance on Trump tariffs or international trade compliance? Our German lawyers support exporters in adapting to changing US trade policies. We are available by phone, email and video conferencing to discuss your specific requirements. Find more resources on our International Sales Law homepage
US Tariff Policy: The Current Legal Situation
The US tariffs introduced by President Trump (“Trump tariffs”) have shaped transatlantic trade since early 2025. German companies, particularly those in the automotive, mechanical engineering, and chemical industries, are under particular pressure.
Since February 2025, the US government has imposed new import tariffs on numerous products. The goal is to balance trade deficits and exert political pressure on partner countries. For German exporters, the tariffs mean cost increases, planning uncertainty, and new legal risks.
The chronology of events illustrates the dynamic nature of this rapid development:
February 2025: The first tariff wave hits neighbouring countries. President Trump introduced the so-called “Trafficking Tariffs”: 25 per cent tariffs on goods from Canada and Mexico, as well as 10-20 per cent on Chinese products. For German companies, initial burdens emerged for automotive and machinery exports due to changed supply chains.
March 2025: Energy tariffs burden the chemical industry. President Trump imposed 25 per cent punitive tariffs on imports from countries that purchase Venezuelan oil. German chemical companies recorded additional cost burdens for energy-intensive production.
April 2025: Comprehensive “Reciprocal Tariffs” Introduction of “Reciprocal Tariffs” with a base rate of 10 per cent and surcharges up to 50 per cent. German exports to the US became more expensive across all industries. A so-called universal tariff was imposed on practically all US imports over $800.
April 2025: Vehicle tariffs on EU imports: 25 per cent tariffs on EU imports of vehicles and auto parts. The extension of measures from May additionally burdened the German automotive industry and supplier chains.
May 2025: First legal defeat. The US Court of International Trade declared the tariffs illegal but temporarily allowed them to remain in place. German exporters faced increased legal uncertainty regarding investment decisions.
August 2025: An appeals court confirms the illegality of President Trump’s tariffs. The court declared a large portion of them illegal and determined that the President had exceeded his authority.
September 2025: Appeal to the Supreme Court. The Trump administration requested that the Supreme Court overturn the appeals court decision. In parallel to this, President Trump issued initial raw materials and pharmaceutical exceptions.
The economic impacts became measurable. The Treasury Secretary pointed to possible repayment obligations in the billions, while Volkswagen recorded significant losses.
US Tariffs: Industry-Specific Impacts
US tariffs affect German industries with varying intensity. While some sectors are particularly vulnerable due to their market position and production structure, others can compensate for the burdens better. The automotive industry and pharmaceutical sector exemplify these different impacts.
US Tariffs: Impact on the Automotive Industry
German automakers are at the centre of American tariff policy. With approximately 65 per cent of all EU auto exports, German companies are the central target group of the imposed measures. Current tariffs of up to 25 per cent on vehicles from Canada and Mexico lead to significant financial burdens for the German automotive industry. Companies are responding differently to this challenge:
BMW announced price increases of 4 per cent for models imported from Mexico in May 2025. This was followed in July 2025 by broad price increases averaging 1.9% for nearly all 2026 models in the US. In September 2025, the company quantified the burden from tariffs as a reduction in profit margin of 1.25 percentage points. BMW is thus among the German manufacturers that most transparently disclose the economic consequences of tariff policy.
Mercedes-Benz pursues a different strategy and fully absorbs the tariffs on the 2025 model year to maintain its market position in the US. Volkswagen projects a profit decline from 7.1 to 3.3 billion euros for the fiscal year 2025. These developments underscore the economic significance of tariff measures and make strategic adjustments by companies necessary .
US Tariffs: Impact on the Pharmaceutical Industry
The situation is particularly critical for German pharmaceutical companies. The US government threatens a gradual increase in tariffs to up to 250 per cent within 18 months. This aggressive strategy aims to relocate pharmaceutical production back to the US.
Bayer AG has so far reacted calmly to these announcements. The company currently sees no need to change its global production structure. However, capital markets evaluate the situation more critically: Bayer stock lost approximately 10 per cent of its value following the tariff announcements. Significant planning uncertainties arise for the German pharmaceutical industry, even though operational adjustments do not yet appear necessary.
US Tariffs and Their Consequences: Legal and Strategic Options for Action for German Companies
Affected German companies should examine both short-term legal steps and strategic adjustments. Legal uncertainty requires a systematic approach.
- Documentation of all tariff payments: German importers should comprehensively record all IEEPA tariff payments since February 2025. Substantial refund claims could arise in case of a final court ruling against the tariffs. All receipts for potential refund procedures should be systematically secured.
- Contract review: Existing supply contracts should be reviewed for price adjustment and force majeure clauses.
- Operational measures: Cash management must factor in increased tariff advance payments. Alternative delivery routes via Canadian or Mexican production sites should be examined, and US production locations for own production should be evaluated.
- Supply chain diversification: US market dependence should be reduced through geographic diversification. Bonded warehouses, duty drawback programs, and free trade zones offer operational advantages. Optimisation of First Sale for Export regulations can unlock additional savings potential in the US business.
Outlook: Supreme Court Decision
The pending decision of the US Supreme Court on the legality of the tariffs will significantly influence further developments. The Trump administration has already announced an appeal against the appeals court ruling. The court has until October 14, 2025, to decide on accepting the case.
For German companies, two fundamentally different scenarios emerge: Should the tariffs remain in place, companies must plan long-term restructuring, consider investments in US production capacity, and fundamentally realign their export strategies. In the reverse case of tariff abolition, refunds of already paid tariffs would be possible, normal trade practices could return, and exporters would regain planning security.
Regardless of the outcome of the Supreme Court decision, the tariff crisis has already shown how quickly international trade relationships can change. German companies should therefore reconsider their risk strategies and prepare for both scenarios.
