Germany’s Exports to US Hit Lowest Level Since 2021 Amid Tariff Tensions

Germany’s exports to the United States have dropped to their lowest level since 2021, according to recent data from the federal statistics agency Destatis.

The decline is attributed to the impact of President Donald Trump’s tariffs on Europe’s largest economy.

In July, exports of German goods to the US decreased by 7.9% compared to the previous month, marking the fourth consecutive monthly decline.

The total value of exports fell to 11.1 billion euros ($13 billion). Despite this decline, the US remained the top destination for “Made in Germany” products.

The tariffs have had a significant impact on Germany’s export-driven economy, which was already facing challenges due to high energy costs, intense competition from Asia, and weak demand.

The decline in shipments to the US contributed to a 0.6% contraction in Germany’s overall exports in July.

Germany’s overall exports in July stood at 130.2 billion euros, while imports slipped 0.1% to 115.4 billion euros.

The trade surplus narrowed to 14.7 billion euros. Exports to China, another major trading partner, also experienced a significant decline, plunging 7.3% in July.

However, there are signs of growth in the industrial production sector. Industrial production grew by 1.3% in July, exceeding expectations.

This growth was driven by the factory equipment, automotive, and pharmaceutical sectors. ING Bank economist Carsten Brzeski noted that the factory data suggests a potential rebound in German industry, but cautioned against premature optimism given the recent disappointments.