By AFP
September 8, 2025
German exports to the US have been falling for months - Copyright POOL/AFP
TORU HANAI
German exports to the United States dropped in July to their lowest level since 2021, data showed Monday, as President Donald Trump’s tariffs exact a heavy toll on Europe’s biggest economy.
Exports of German goods to the world’s largest economy were down 7.9 percent from a month earlier, according to provisional data from federal statistics agency Destatis.
It was their fourth straight monthly decline, with the total value dropping to 11.1 billion euros ($13 billion), the agency said. Nevertheless, the US remained the top destination for “Made in Germany” products.
Trump’s tariffs have dealt a major blow to Germany’s export-driven economy, where major manufacturers had already been struggling with high energy costs, fierce competition from Asia and weak demand.
The drop in shipments to the US helped push Germany’s overall exports in July to a 0.6 percent contraction from the previous month — worse than expectations of zero growth from analysts surveyed by financial data firm FactSet.
In total, Germany exported goods worth 130.2 billion euros in July. Imports slipped 0.1 percent on the previous month to a value of 115.4 billion euros.
The trade surplus narrowed to 14.7 billion euros.
Exports to China — another of Germany’s top trading partners — plunged 7.3 percent in July, the data showed.
German businesses have suffered in the world’s number two economy as they face increased local competition, particularly in the auto sector.
On a more positive note, industrial production grew a better-than-expected 1.3 percent in July, according to provisional figures from Destatis.
That was up from a contraction of 0.1 percent the previous month.
There was growth in the factory equipment, auto and pharmaceutical sectors, the data showed.
ING bank economist Carsten Brzeski said the factory data suggested German industry data could be set to finally rebound.
“Trying to look through this volatility, the hopes for at least a cyclical rebound in German industry remain alive — even though the disappointments of the last few years warn against any premature optimism,” he said.
German exports to the United States dropped in July to their lowest level since 2021, data showed Monday, as President Donald Trump’s tariffs exact a heavy toll on Europe’s biggest economy.
Exports of German goods to the world’s largest economy were down 7.9 percent from a month earlier, according to provisional data from federal statistics agency Destatis.
It was their fourth straight monthly decline, with the total value dropping to 11.1 billion euros ($13 billion), the agency said. Nevertheless, the US remained the top destination for “Made in Germany” products.
Trump’s tariffs have dealt a major blow to Germany’s export-driven economy, where major manufacturers had already been struggling with high energy costs, fierce competition from Asia and weak demand.
The drop in shipments to the US helped push Germany’s overall exports in July to a 0.6 percent contraction from the previous month — worse than expectations of zero growth from analysts surveyed by financial data firm FactSet.
In total, Germany exported goods worth 130.2 billion euros in July. Imports slipped 0.1 percent on the previous month to a value of 115.4 billion euros.
The trade surplus narrowed to 14.7 billion euros.
Exports to China — another of Germany’s top trading partners — plunged 7.3 percent in July, the data showed.
German businesses have suffered in the world’s number two economy as they face increased local competition, particularly in the auto sector.
On a more positive note, industrial production grew a better-than-expected 1.3 percent in July, according to provisional figures from Destatis.
That was up from a contraction of 0.1 percent the previous month.
There was growth in the factory equipment, auto and pharmaceutical sectors, the data showed.
ING bank economist Carsten Brzeski said the factory data suggested German industry data could be set to finally rebound.
“Trying to look through this volatility, the hopes for at least a cyclical rebound in German industry remain alive — even though the disappointments of the last few years warn against any premature optimism,” he said.
At consumer tech show, German firms fret about US tariffs
By AFP
September 8, 2025
Worries about US tariffs were on display at this year's IFA consumer tech show in Berlin - Copyright POOL/AFP Vyacheslav PROKOFYEV
By AFP
September 8, 2025
Worries about US tariffs were on display at this year's IFA consumer tech show in Berlin - Copyright POOL/AFP Vyacheslav PROKOFYEV
Clement KASSER
Displaying one of her company’s hot plates proudly labelled “Made in Germany”, Sigrid Klenk concedes that maintaining production at home could become harder due in part to US tariffs.
Continuing to make goods in Germany “is becoming less and less simple,” Klenk, boss of the small firm Rommelsbacher, said at the IFA consumer tech show in Berlin.
Particularly problematic for Rommelsbacher, whose products range from kettles to coffee makers, is a 50-percent US levy on steel and aluminium.
“Now we have to specify the amount of steel contained in our products, especially our hot plates,” she told AFP. “This has kept us very busy in recent days.”
Europe’s already struggling top economy is under huge pressure from President Donald Trump’s tariff blitz — official data released Monday showed German exports to the US plunged to their lowest level for nearly four years in July.
The concern was palpable at this year’s IFA show in Berlin, where the ZVEI industry federation warned that German electronics exports to the US, the sector’s second-largest market, could fall by as much as 20 percent.
While the European Union and Trump struck a deal in July agreeing on import levies of 15 percent on most goods from the bloc, there remains much uncertainty.
Businesses complain that, in reality, the list of products facing extra tariffs continues to grow.
As well as small- and medium-sized businesses, home appliance giants like Miele are worried.
“When consumers don’t know what will happen tomorrow, it’s the worst situation,” and “it’s the same for businesses”, Markus Miele, the executive director of the group, told AFP.
The group has already had to raise prices as a result of the tariffs, he said.
– ‘Costs too high’ –
Adding to the company’s problems is continued weak demand in many countries, he added — pointing in particular to its home market, where consumers are reluctant to spend even after recent falls in inflation.
In contrast the economic situation is better in the US, he said, noting that Miele opened its first production site there even before the return of Trump, who is aiming with his tariffs to bring manufacturing jobs back to America.
The long-running woes of Germany’s small businesses were plain to see at the IFA show — even before the US tariffs, they had been battling problems from rising labour costs to high energy prices and a lack of skilled workers.
Vacuum cleaner maker Fakir, for instance, had to abandon production in Germany a year and a half ago.
“It was impossible to continue — the costs were too high,” said an employee, who spoke anonymously, at the show.
In contrast to ailing German manufacturers, Chinese companies at the event were attracting crowds with their innovations: such as robot vacuum cleaners that climb stairs and robotic arms that play chess.
Once considered of lower quality, their offerings are now giving German-made products a run for their money.
German companies are racing to keep up but it is an uphill battle. For now, many simply hope that consumers at home begin to spend again.
“I hope the Christmas season will bring a bit more enthusiasm to German consumers,” said Klenk.
Displaying one of her company’s hot plates proudly labelled “Made in Germany”, Sigrid Klenk concedes that maintaining production at home could become harder due in part to US tariffs.
Continuing to make goods in Germany “is becoming less and less simple,” Klenk, boss of the small firm Rommelsbacher, said at the IFA consumer tech show in Berlin.
Particularly problematic for Rommelsbacher, whose products range from kettles to coffee makers, is a 50-percent US levy on steel and aluminium.
“Now we have to specify the amount of steel contained in our products, especially our hot plates,” she told AFP. “This has kept us very busy in recent days.”
Europe’s already struggling top economy is under huge pressure from President Donald Trump’s tariff blitz — official data released Monday showed German exports to the US plunged to their lowest level for nearly four years in July.
The concern was palpable at this year’s IFA show in Berlin, where the ZVEI industry federation warned that German electronics exports to the US, the sector’s second-largest market, could fall by as much as 20 percent.
While the European Union and Trump struck a deal in July agreeing on import levies of 15 percent on most goods from the bloc, there remains much uncertainty.
Businesses complain that, in reality, the list of products facing extra tariffs continues to grow.
As well as small- and medium-sized businesses, home appliance giants like Miele are worried.
“When consumers don’t know what will happen tomorrow, it’s the worst situation,” and “it’s the same for businesses”, Markus Miele, the executive director of the group, told AFP.
The group has already had to raise prices as a result of the tariffs, he said.
– ‘Costs too high’ –
Adding to the company’s problems is continued weak demand in many countries, he added — pointing in particular to its home market, where consumers are reluctant to spend even after recent falls in inflation.
In contrast the economic situation is better in the US, he said, noting that Miele opened its first production site there even before the return of Trump, who is aiming with his tariffs to bring manufacturing jobs back to America.
The long-running woes of Germany’s small businesses were plain to see at the IFA show — even before the US tariffs, they had been battling problems from rising labour costs to high energy prices and a lack of skilled workers.
Vacuum cleaner maker Fakir, for instance, had to abandon production in Germany a year and a half ago.
“It was impossible to continue — the costs were too high,” said an employee, who spoke anonymously, at the show.
In contrast to ailing German manufacturers, Chinese companies at the event were attracting crowds with their innovations: such as robot vacuum cleaners that climb stairs and robotic arms that play chess.
Once considered of lower quality, their offerings are now giving German-made products a run for their money.
German companies are racing to keep up but it is an uphill battle. For now, many simply hope that consumers at home begin to spend again.
“I hope the Christmas season will bring a bit more enthusiasm to German consumers,” said Klenk.
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