German exports to the United States fell sharply in 2025 as tariff policies introduced under President Donald Trump disrupted transatlantic trade, though stronger demand within Europe helped stabilize the country’s overall export performance.

Read also: Germany’s 2025 Export Crisis: US Tariffs and China Deficit Weigh on Economy

Data released by Germany’s federal statistics office, Destatis, showed shipments to the U.S. dropped 9.4% year-on-year across the January–November period, totaling roughly €136 billion. The decline reflects mounting pressure on German exporters following Washington’s shift in customs policy.

Destatis noted that the tariff environment significantly strained German-American trade ties, with key sectors recording notable losses. Automotive exports—including motor vehicles and components—remained Germany’s largest export category to the U.S. but were among the hardest hit.

Meanwhile, U.S. exports into Germany edged up just over 2%, driven largely by pharmaceutical shipments. The shift narrowed Germany’s trade surplus with the U.S. to its lowest level since the pandemic-era disruption of 2021.

Germany plays an outsized role in the European Union’s trade balance with Washington, accounting for 33.7% of EU exports to non-eurozone markets in 2024. While trade negotiations and tariff responses are handled at the EU level, Germany’s export-heavy industrial base leaves it especially exposed to external shocks—from multinational machinery producers to mid-sized family manufacturers.

A July trade arrangement introduced a baseline 15% tariff on EU exports to the U.S., a steep increase from the roughly 1.4% average rate that prevailed previously, according to Brussels-based think tank Bruegel.

Amid the tariff headwinds, China reclaimed its position as Germany’s largest trading partner, overtaking the United States in total trade volume last year.

Europe Softens the Blow

Despite the slump in U.S.-bound shipments, Germany’s overall export picture showed modest resilience. Seasonally adjusted figures indicate total exports rose 1% in 2025 to approximately €1.5 trillion—marking the first annual increase in two years.

Growth was fueled primarily by intra-European trade. Exports to EU partner countries climbed about 4%, supported by robust demand for industrial staples such as machine tools and engineered systems.

According to data from Destatis and the German Chamber of Commerce and Industry, European markets effectively cushioned the downturn in transatlantic trade.

Volker Treier, DIHK’s head of global trade, told Reuters that regional demand “more or less saved” Germany’s export performance, underscoring the need for competitiveness-focused economic policy at both German and European levels.

Government Bets on 2026 Recovery

Germany’s federal government, led by Chancellor Friedrich Merz, is pursuing an aggressive public spending agenda aimed at reviving economic momentum. Investment is being directed toward defense manufacturing and infrastructure modernization.

Speaking in Abu Dhabi at the close of a Gulf tour focused on energy and arms partnerships, Merz pointed to early signs of stabilization.

He said recent indicators of improvement “encourage and embolden” the government to continue reforms designed to stimulate investment and employment, while acknowledging that Europe’s largest economy still has ground to recover.

Berlin is projecting GDP growth of around 1% in 2026 following several years of near-stagnation.