Frankfurt (Germany) (AFP) – German exports to the United States dropped in July to their lowest level since 2021, data showed Monday, as President Donald Trump’s tariffs exact a heavy toll on Europe’s biggest economy. Exports of German goods to the world’s largest economy were down 7.9 percent from a month earlier, according to provisional data from federal statistics agency Destatis. It was their fourth straight monthly decline, with the total value dropping to 11.1 billion euros ($13 billion), the agency said.
Nevertheless, the US remained the top destination for “Made in Germany” products. Trump’s tariffs have dealt a major blow to Germany’s export-driven economy, where major manufacturers had already been struggling with high energy costs, fierce competition from Asia, and weak demand. The drop in shipments to the US helped push Germany’s overall exports in July to a 0.6 percent contraction from the previous month — worse than expectations of zero growth from analysts surveyed by financial data firm FactSet. In total, Germany exported goods worth 130.2 billion euros in July.
Imports slipped 0.1 percent on the previous month to a value of 115.4 billion euros. The trade surplus narrowed to 14.7 billion euros. Exports to China — another of Germany’s top trading partners — plunged 7.3 percent in July, the data showed. German businesses have suffered in the world’s number two economy as they face increased local competition, particularly in the auto sector.
On a more positive note, industrial production grew a better-than-expected 1.3 percent in July, according to provisional figures from Destatis. That was up from a contraction of 0.1 percent the previous month. There was growth in the factory equipment, auto, and pharmaceutical sectors, the data showed.
ING bank economist Carsten Brzeski said the factory data suggested German industry data could be set to finally rebound. “Trying to look through this volatility, the hopes for at least a cyclical rebound in German industry remain alive — even though the disappointments of the last few years warn against any premature optimism,” he said.
© 2024 AFP
