German Exports Fall 7.7% to US May Amid Tariff Impact

In May 2025, German exports declined by 1.4% month-over-month to 129.4 billion euros, marking a four-month low largely due to a sharp 7.7% drop in shipments to the United States, the lowest since March 2022. This decline is attributed to the tariffs imposed by President Donald Trump's administration, including 25% on autos, 50% on metals, and 10% on other goods, which have caused significant disruptions in transatlantic trade. Despite the slump, the U.S. remains Germany's largest export destination. Imports to Germany also fell by 3.8% in May, hitting a five-month low, with reductions in goods from the U.S., China, and the UK, though imports from Russia increased. The EU Commission is in talks with the U.S. government to clarify future customs regulations, with the U.S. recently extending a tariff pause until August 1. Germany's economy is facing substantial short-term headwinds, with the Bundesbank forecasting stagnation for the year amid ongoing trade uncertainties.