The VAT is refunded on exports. Essentially a govt subsidy benefiting German exports while penalizing imports.
I believe the VAT isn’t levied on exports in the first place. In any case, within the EU, where all makers compete with each other, the VAT rules apply the same to all players. That is no disadvantage to US makers.
The “problem” is that what US makers have to offer is not in much demand in Europe. Guess how many pickup trucks you see on the roads? Almost none.