In July, German exports fell by 0.6% compared to the previous month, primarily due to a 7.9% drop in shipments to the United States due to tariffs. This represents a significant challenge for Europe’s largest economy, where foreign trade plays a key role: in 2024, bilateral trade with the United States was expected to reach €253 billion, making it Germany’s largest trading partner.
While exports to the United States declined, shipments to EU countries increased by 2.5%, raising hopes that neighboring markets will offset the losses. Economists note that increased trade within the eurozone could mitigate the negative impact of US tariffs on the German economy.
At the same time, industrial production in the country increased by 1.3% in July compared to June. Commerzbank forecasts that this positive trend could be maintained thanks to interest rate cuts by the European Central Bank and other policymakers.