German exports drop in July as U.S. tariffs bite, investor confidence sinks
German exports fell unexpectedly in July, dragged down by weaker demand from the United States after Washington imposed tariffs on European goods, official data showed Monday.
Exports from Europe’s largest economy dropped 0.6% month-on-month, against forecasts of a slight rise. Shipments to the U.S. plunged 7.9%, pulling overall non-EU exports down 4.5%. The U.S. was Germany’s top trading partner in 2024, with bilateral trade worth €253 billion ($297 billion), News.Az reports, citing Reuters.
The slump coincided with a sharp fall in investor sentiment, with the Sentix survey showing eurozone morale at its lowest since April and a particularly steep decline in Germany. “Economic anxieties are coming back with full force,” Sentix warned.
Still, there were signs of resilience: exports to EU partners grew 2.5%, with Central and Eastern Europe’s share hitting a record 12%. Imports dipped 0.1%, leaving a trade surplus of €14.7 billion, down from June’s €15.4 billion.
Meanwhile, separate data showed industrial production rose 1.3% in July, beating expectations, though orders have been falling for three straight months. Analysts say upcoming interest rate cuts may support a modest rebound in German industry.
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