German Exports to US Decline for Fifth Consecutive Month Amid Tariff Impact

Continued Decline in German-US Trade

Germany's exports to the United States experienced their fifth consecutive monthly decline in August 2025, according to data released by the Federal Statistical Office (Destatis) on Thursday. Shipments to the U.S. dropped by 2.5% month-on-month, reaching a total value of €10.9 billion ($12.7 billion) for the month. This marks the lowest export level to the U.S. since November 2021.

The year-on-year figures reveal an even sharper contraction, with exports to the U.S. plummeting by approximately 20% to 20.1% compared to August 2024. This sustained downturn is largely attributed to the ongoing impact of U.S. tariffs on various European imports, particularly affecting key German industries.

Impact of U.S. Tariffs on Key Sectors

The primary driver behind the export slump is the implementation of U.S. tariffs on European goods. In July, the European Union and the Trump administration reached an agreement that set most tariffs on EU goods at 15%. This rate is notably higher than pre-existing tariffs before the current administration's return to power. While this 15% rate was considered a 'relief' from a previous 27.5% sector-specific levy on cars, it remains a significant burden for expensive consumer goods such as automobiles.

The tariffs specifically target a range of products, including:

• Automotives
• Pharmaceuticals
• Semiconductors
• Timber

The U.S. administration initiated steep tariff hikes on automobiles, car components, and other products from the EU earlier this year, with measures taking effect gradually from April. These levies disproportionately affect Germany, given that the U.S. is its biggest export market and cars and car parts constitute a substantial portion of its trade surplus with Washington.

Economic Outlook and Expert Commentary

The decline in exports to the U.S. adds further strain to Germany's export-driven economy, which is already grappling with a manufacturing slump and weak demand in other key markets. Ralph Solveen, a senior economist at Commerzbank, commented that the flow of goods to the U.S. is likely to 'remain weak in the coming months,' citing the combined effect of higher tariffs and a stronger euro.

Dirk Jandura, president of the Federation of German Wholesale, Foreign Trade and Services, echoed this sentiment, noting the 'gloomy' outlook for German foreign trade and stating that overall trade has been 'stagnating with a slight downward trend for months.' The German Federal Ministry for Economic Affairs and Energy has also warned that the anticipated economic recovery will be driven by domestic demand rather than foreign trade, a departure from the country's typical rebound pattern.

Broader Trade Context

Despite the challenges in the U.S. market, Germany's overall foreign trade in August 2025 presented a mixed picture. Total German exports fell by 0.5% month-on-month, while imports dropped by 1.3%. This led to a widening of Germany's trade surplus to €17.2 billion in August, up from €16.3 billion in July, primarily because imports fell more significantly than exports. Exports to China saw an increase of 5.4% in August, while exports to other EU countries declined by 2.5%.