Spotlight on trade and investment relations between the United States and Bavaria

Bavaria and the United States are intertwined by strong economic relations in terms of trade and investment.

The United States is Bavaria’s second most important trading partner

In 2024, the United States remained Bavaria’s largest export market. The United States imported 12.8 percent of all Bavarian exports in 2024. Bavarian exports to the United States increased by 1.6 percent compared to the previous year. These numbers show the significance of possible U.S. tariffs on Bavarian exports.

Most important Bavarian export goods to the United States are:

• Motor vehicles and parts thereof
• Machines
• Data processing equipment, electronic and optical products
• Electrical equipment
• Pharmaceutical and similar products

Most important Bavarian import goods from the United States are:

• Motor vehicles and parts thereof
• Data processing equipment, electronic and optical products
• Pharmaceutical and similar products
• Other vehicles
• Chemical products

With a trade volume of 42.6 billion euro the United States was Bavaria’s second largest trading partner in 2024.

Bavarian companies create added-value and secure jobs in the United States

The United States is the number one investment destination for Bavarian companies. The stock of Bavarian direct investment in the United States totaled 94.4 billion euro in 2021, which was 32.0 percent of all Bavarian foreign investment.

About 700 Bavarian-controlled companies generate 131 billion euro in added-value in the United States. They employ 159,000 people and secure a further 569,000 jobs through indirect and induced effects.

These are the key results of the vbw study “ The Economic Impact of the Bavarian Business in the USA ”.

On the other hand, more than 1,500 U.S. companies are located in Bavaria.

Bavarian Industry Association fears negative consequences of tariffs

As the Bavarian Industry Association, we are concerned by the announced and introduced tariffs of the new U.S. administration. These will make products from Bavarian manufacturers more expensive and therefore less competitive on the U.S. market. If there were countermeasures as a result of the U.S. tariff increases and a general increase in trade barriers worldwide, Germany and Bavaria, as particularly export-oriented countries, would be disproportionately affected.

We advocate for a united and confident European Union. The EU Commission must seek a negotiated solutions with the United States and avert a trade war. Counter tariffs may only be used as a last resort.