Tariffs and Market Stagnation Pressure Europe’s Ag Machinery Makers

European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment. “We are traveling to Hanover in an economically tense and politically volatile situation. However, we hope to see sales pick up again in the medium term,” says Dr. Tobias Ehrhard, Managing Director of the VDMA Agricultural Machinery Association, at the pre-press conference for Agritechnica, the world's largest agricultural machinery trade fair. The industrial trade fair will take place in Hanover from November 9 to 15.

Sales situation still unsatisfactory

“Although order intake rose noticeably in numerous product segments in the first half of 2025, the sales situation remains unsatisfactory,” emphasizes Ehrhard. The industry-wide business climate index, which is based on a monthly survey of top managers in European industry, paints a similar picture. “An upturn has been expected for some time, but it is not really materializing at the moment,” says Ehrhard, explaining the continuing stagnation in the industry.

Cyclical business

Looking back on the past six months, the effects of the downturn that began across the board in 2023 are still visible. While manufacturers producing in Germany still had to record a 28 percent decline in sales in 2024, this decline melted away to around 10 percent from January to June 2025. Almost all product segments are affected by the market decline.