German exports unexpectedly fell in August on a sharp decline in US demand due to Washington's tariffs on European imports, official data showed today.
Exports from Europe's biggest economy fell by 0.5% in August compared with the previous month, data from the federal statistics office showed today, while a 0.3% increase was forecast by a Reuters poll.
Exports to the US were down 2.5% from July. Compared with August 2024, they were down 20.1% on a calendar and seasonally adjusted basis.
The flow of goods to the US in particular is likely to remain weak in the coming months, especially as higher tariffs are compounded by an even stronger euro, said Ralph Solveen, senior economist at Commerzbank.
The Trump administration imposed a 15% import tariff on most goods from the EU under a deal reached with the 27-nation bloc in July that aimed to avert a trade war between the two economic heavyweights, which account for almost a third of global trade.
The US was Germany's biggest bilateral trading partner in 2024 with two-way goods trade totaling €253 billion, and the export-oriented German economy is expected to be badly affected by the levies.
Even as it faced headwinds in the US, Germany's exports to non-EU countries rose by 2.2% in August, as exports to China increased by 5.4% compared with July 2025.
However, deliveries to China are unlikely to pick up more pace in the coming months, Solveen said.
"Hopes for an economic recovery are not based on foreign demand, but on a domestic economy that is picking up due to lower European Central Bank interest rates and higher government spending," Solveen said.
Exports to the UK decreased by 6.5% on the month and exports to EU countries fell by 2.5%, offsetting a 2.2% increase in exports to non-EU countries.
Imports dropped 1.3% on a calendar and seasonally adjusted basis. The foreign trade balance showed a surplus of €17.2 billion in August, up from €16.3 billion in July and down from €21.9 billion in August 2024.
The surplus widened as imports fell further than exports, for the second month running.
