
der Rückwärtsgang
reverse gear
The gear in a vehicle that makes it possible to drive backward.
Der Fahrer legte den Rückwärtsgang ein, um einzuparken.
The driver put the car into reverse gear in order to park.
reverse gear
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reverse gear
The gear in a vehicle that makes it possible to drive backward.
Der Fahrer legte den Rückwärtsgang ein, um einzuparken.
The driver put the car into reverse gear in order to park.

reverse gear
Figuratively, a reversal or step backward that undoes previous progress.
Nach den erfolgreichen Reformen legte die neue Regierung politisch den Rückwärtsgang ein.
After the successful reforms, the new government politically shifted into reverse gear.
The word is made up of three parts: 'rückwärts' (backward), the linking sound '-s-', and 'Gang' (gear). So it literally means a 'gear' with which you drive 'backward'.
Beim Einparken muss man den Rückwärtsgang benutzen.
When parking, you have to use reverse gear.
The fixed expression for both meanings is 'den Rückwärtsgang einlegen' (to put into reverse gear). This applies both to driving a car and to a figurative step backward.
Um aus der Parklücke zu kommen, musste er den Rückwärtsgang einlegen.
To get out of the parking space, he had to put the car into reverse gear.
You can tell whether the literal or figurative meaning is intended from the context. If it is about vehicles and driving, the technical meaning is meant. If it is about politics, society, or development, it means a step backward.
Das Getriebe ist kaputt, ich kann den Rückwärtsgang nicht mehr einlegen.
The transmission is broken; I can't put it into reverse gear anymore.
setback / regression
Both words can describe a development returning to a worse earlier state. Rückschritt can also refer to a single loss or setback, whereas Rückwärtsgang figuratively emphasizes deliberately reversing progress made so far. Use Rückschritt for the result and Rückwärtsgang when the reversal of the development is the main focus.

Mit den neuen Kürzungen legt die Stadt beim Umweltschutz den Rückwärtsgang ein.
With the new cuts, the city is putting environmental protection into reverse.
Der Verlust dieses wichtigen Projekts ist ein großer Rückschritt für die Firma.
The loss of this important project is a major setback for the company.