German exports to the United States have reached their lowest level since 2021, according to data released by the federal statistics agency Destatis. In July, exports of German goods to the US dropped by 7.9 percent from the previous month, totaling 11.1 billion euros. This decline marks the fourth consecutive monthly decrease, with the US remaining the top destination for German products.
The decrease in exports to the US has been largely attributed to the tariffs imposed by President Donald Trump, which have had a significant impact on Germany’s export-driven economy. Major manufacturers in the country were already facing challenges such as high energy costs, intense competition from Asia, and weak demand. The tariffs have further exacerbated these issues, leading to a decline in shipments to the US.
As a result, Germany’s overall exports in July contracted by 0.6 percent from the previous month, falling short of expectations of zero growth. The total value of exports in July was 130.2 billion euros, while imports slipped by 0.1 percent to 115.4 billion euros. The trade surplus narrowed to 14.7 billion euros.
Exports to China, another key trading partner for Germany, also declined by 7.3 percent in July. German businesses have faced increased competition in the Chinese market, particularly in the automotive sector. However, industrial production in Germany showed a positive trend, growing by 1.3 percent in July, according to provisional figures from Destatis. This growth was driven by the factory equipment, auto, and pharmaceutical sectors.
The increase in industrial production suggests that German industry may be poised for a rebound, despite the volatility and disappointments of recent years. According to ING Bank economist Carsten Brzeski, the factory data indicates that the hopes for a cyclical rebound in German industry remain alive. The decline in exports to the US and China, however, highlights the ongoing challenges faced by Germany’s export-driven economy, and the need for manufacturers to adapt to changing global trade conditions.
