German exports to U.S. plunge to lowest in almost four years

Newsworm
with
AFP
September 8, 2025
Germany’s exports fell 0.6% in July 2025 to €130.2B, led by a 7.9% drop in shipments to the U.S., the fourth straight monthly fall and lowest since Dec 2021. While EU exports rose 2.5%, weakness in U.S. and China trade cut the surplus to €14.7B, raising concerns for Germany’s export-led economy.
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German
Germany's exports to the US fell for the fourth consecutive month in July due to Washington's tariff policy – ​​to the lowest level since December 2021. They fell by 7.9 percent compared to June and by 14.1 percent compared to July 2024. - AFP

Germany’s export momentum weakened in July 2025, with shipments abroad falling 0.6% from June. Imports slipped only slightly by 0.1%. Goods worth €130.2 billion were exported and €115.4 billion were imported into Germany, leaving the trade surplus at €14.7 billion, down from the previous month’s €15.4 billion.

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Trade with the European Union

The European Union (EU) remains Germany’s primary trading partner. In July 2025, exports to EU member states reached €74.8 billion, while imports from the EU amounted to €60.3 billion. Month-over-month, exports to the EU rose by 2.5%, while imports increased by 1.1%.

Breaking this down further, exports to the Eurozone totaled €52.0 billion, up 2.5%, with imports from these countries rising 1.3% to €39.8 billion. Non-Eurozone EU countries accounted for €22.8 billion in exports (+2.6%) and €20.5 billion in imports (+0.7%). These figures underline the continued importance of intra-European trade for Germany, supporting both industrial supply chains and consumer markets.

Trade with Non-EU Countries

Trade with countries outside the EU, often referred to as third countries, was almost balanced in July. Exports to these nations reached €55.3 billion, while imports were €55.1 billion. Compared to June 2025, exports to non-EU countries fell by 4.5%, while imports decreased slightly by 1.3%. This decline was influenced by weakening demand in some key markets and ongoing global economic adjustments.

Among the non-EU partners, the United States remained Germany’s top export destination, though exports there fell by 7.9% month-over-month to €11.1 billion. This marks the fourth consecutive monthly decline and the lowest level since December 2021. Year-on-year, exports to the U.S. were down 14.1%, reflecting both geopolitical uncertainties and shifts in trade dynamics. Exports to China also declined, falling 7.3% from June to €6.4 billion, while exports to the United Kingdom dropped 3.1% to €7.0 billion.

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On the import side, China continued to be Germany’s largest supplier of goods, with imports totaling €14.3 billion, down 2.4% from June. Imports from the United States decreased by 10% to €7.8 billion, while imports from the UK rose by 7.8% to €3.2 billion. Russia, which has historically been a smaller trade partner, saw a sharp decline: exports to Russia fell 12.4% month-over-month to €0.5 billion, and imports from Russia plummeted 43.9% to €0.1 billion. Compared with July 2024, these represented year-on-year declines of 19.8% for exports and 40.3% for imports, signaling a continued drop in trade with the country.

Original (Unadjusted) Trade Figures

On a nominal, unadjusted basis, Germany exported €134.9 billion in goods in July 2025 and imported €118.0 billion. This yielded an unadjusted trade surplus of €16.9 billion, slightly down from €20.2 billion in July 2024. Year-on-year, exports rose by 1.3%, while imports increased by 4.5%, highlighting stronger domestic demand alongside solid export performance.

Outlook and Implications

Germany’s July trade statistics indicate a resilient export sector, particularly within the EU, even as challenges emerge in non-European markets. The slight decline in trade surplus compared with previous months and the prior year reflects the impact of geopolitical tensions, global economic fluctuations, and shifts in demand from major partners such as the U.S., China, and Russia.

Exports to the EU and Eurozone remain a stabilizing factor, supporting domestic manufacturing and employment. However, the continued drop in exports to the U.S. and China may pose medium-term challenges for sectors dependent on these markets. Additionally, Germany’s strong trade performance with the UK, despite post-Brexit adjustments, indicates flexibility in adapting to new trade regimes.

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