German exports rose in the first half of the year, but the trend in trade with the heavyweights the United States and China is causing concern: deliveries to both countries dropped sharply. This was offset by significant increases in shipments to other EU countries, the Federal Statistical Office in Wiesbaden reported on Thursday. Imports, particularly from China, rose markedly, and Germany's foreign trade balance consequently deteriorated.
In total, Germany exported goods worth 817.8 billion euros in the first half of the year, 3.9 percent more than in the same period a year earlier. The most important buyer remained the United States. However, US exports of 73.1 billion euros represent a decline of 6.1 percent. The tariffs imposed by US President Donald Trump are clearly making themselves felt here. Car exports to the United States fell steeply, by 17.2 percent.
Deliveries by German companies to France, by contrast, came to 63.2 billion euros, 7.6 percent more than in the same period last year. Exports to the Netherlands also rose strongly, by nine percent to 60.5 billion euros. China slipped further down the ranking of the most important buyers of German products. Exports to the People's Republic fell by 12.2 percent to 36.4 billion euros.
At the same time, imports from China continued to climb steeply, up 8.8 percent to 89.1 billion euros. Imports from the United States also rose significantly, by seven percent to 50.6 billion euros. Trade with the US therefore continues to show a substantial export surplus, while trade with China is becoming ever more unbalanced to Germany's disadvantage.
The figures showed "how strongly the German economy is coming under pressure from the geoeconomic shifts," said Sebastian Dullien, scientific director of the Macroeconomic Policy Institute at the Hans Böckler Foundation. Both China and the United States, he said, were attempting "with aggressive trade and industrial policy to support their own industry and push foreign suppliers out of their market."
Looking ahead, Europe will be "the only relevant source of export growth," the economist forecasts. "Countries such as India or Brazil are too small on a global scale to make up for the loss of market share in the US and China." Germany therefore needs a strong EU single market and "an assertive industrial policy that prevents future industries in Europe from being pushed out of the market by subsidised Chinese competition."
According to the statistics office, cars and car parts remained Germany's most important export goods despite a decline of 5.8 percent. Machinery came second, with a slight decrease. There was a clear increase of 9.5 percent in data processing equipment and electrical and optical products. The chemicals industry also exported more.
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