German exporters are warned of ongoing weakness in US and Chinese markets in 2026, with little hope for recovery, according to BGA trade association. Exports to the US dropped over 7% to nearly 150 billion euros in 2025, while exports to China fell 10% to 81 billion euros.

US tariffs on EU goods are hindering transatlantic trade, adding a permanent burden on German exporters. Germany also faces challenges such as a strong euro, high energy costs, bureaucracy, and weak investment, says BGA president Dirk Jandura.

Chinese industrial policies favoring domestic producers are reducing demand for German goods, especially in automotive, mechanical engineering, and chemicals sectors. German companies are shifting production to China or other Asian markets, leading to fewer exports from Germany.

Overall, the outlook for German exporters in 2026 remains challenging due to ongoing weaknesses in key markets and structural headwinds, according to the BGA trade association.

Read more at Yahoo Finance: German exporters face prolonged slump in key U.S., China markets