Tariff dispute with the USA: new opportunities through export finance

There is a lot at stake for Europe and Germany in the tariff dispute with the USA. Last year, it accounted for around 21% of exports, making it the European Union's most important trade partner. The USA has been Germany's number one export market since 2015 and last year alone, it accounted for around EUR 161 billion in goods receipts from Germany – 2.2% more than the year before. Germany’s active promotion of foreign trade contributes to the success of German industry on the US market. It will continue to open up opportunities in the United States for companies from all over the country.

Supporting home-grown industry in international trade has a long tradition in Germany. Export finance has been part of KfW’s legal mandate ("KfW Act") since the times of the post-war boom years in West Germany. In this way, the German promotional bank played an important role in Germany’s rise to become an export nation. With its project and export finance, KfW has also contributed to the success of products made in Germany in the USA – and continues to do so to this day.

Transformation and renewables are a focus area of KfW's promotional policy, as seen in some of its recent projects in the US market. For example, in 2023 KfW participated in a loan through its subsidiary KfW IPEX-Bank amounting to up to EUR 150 million and with which a sustainable rebar plant in Arkansas is being built. The funds are mainly being used to cover Euler-Hermes export insurance for the German SME SMS Group: the company is based in Mönchengladbach and supplies state-of-the-art, energy-efficient steelworks technology.

KfW IPEX-Bank has also played an important role in the acquisition financing of wind energy. The financing banking consortium is providing US infrastructure investor Stonepeak with loans for a 50% acquisition of the Coastal Virginia offshore wind farm, which is currently under construction. When the plant goes into operation off the east coast of the United States by the end of next year, it will be the largest offshore wind farm in the United States, supplying 660,000 households with renewable energy. Some of the major components of the wind farm are attributable to Germany and Europe. For example, Siemens Gamesa is supplying and installing 176 wind turbines.

These are great success stories, but risks arising from the current US tariffs policy remain. However, because the US market will continue to be an important one, KfW will carry on doing business here – and in so doing will create new opportunities for German and European companies.

Status: 5 May 2025