German exports to the US fell to a 4-year low in August, hit by Trump tariffs. Shipments to the country dropped 20% from a year earlier, marking the fifth straight month of decline.
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German exports to the United States have fallen for the fifth consecutive month, reaching their lowest level in nearly four years, as the impact of tariffs imposed by US President Donald Trump continues to reverberate across transatlantic trade.
Despite remaining Germany’s top export destination, shipments to the US declined by 2.5% month-on-month in August to €10.9 billion, according to provisional data released on Thursday by the Federal Statistical Office (Destatis).
On a year-on-year basis, exports to the US plunged by 20%, underscoring the long-term strain imposed by tariff policies.
Conversely, Germany imported more goods from the United States in August, with inbound shipments rising 3.4% month-on-month to €8.0bn. Compared with August 2024, imports from the US were up nearly 8%.
The European Union reached a deal with the Trump administration in August, agreeing on a unified 15% tariff on most EU exports to the US.
The agreement covers key sectors including automotive, pharmaceuticals, semiconductors, and timber. Some categories of European goods have been granted preferential treatment under the deal, including critical natural resources such as cork, all aircraft and aircraft components, as well as generic pharmaceuticals and chemical precursors.
According to the European Commission, goods and services worth over €4.2bn cross the Atlantic each day, amounting to an annual trade value of €1.6 trillion.
German trade surplus rebounds, but remains well below 2024 levels
Beyond the transatlantic relationship, Germany’s overall trade balance improved in August despite subdued export activity.
Total exports amounted to €129.7bn, down 0.5% from July and 0.7% lower than in August 2024.
Imports stood at €112.5bn, marking a 1.3% monthly decline but a 3.5% rise year-on-year.
As a result, the trade surplus increased to €17.17bn in August 2025 — its second consecutive monthly gain.
However, compared to the €21.9bn surplus recorded a year earlier, this represents a 21.6% annual contraction.
The entire surplus stemmed from trade within the European Union.
Germany exported €72.5bn worth of goods to fellow EU members while importing €58.8bn, resulting in a significant intra-bloc surplus.
Month-on-month, EU-bound exports declined by 2.5%, while imports from the bloc dropped by 1.9%.
In contrast, Germany registered a trade deficit with non-EU countries. Exports to non-EU partners amounted to €57.1bn in August, while imports reached €53.7bn.
Among non-EU markets, the United Kingdom saw a notable decline in German imports, with exports falling 6.5% month-on-month to €6.5bn.
On the upside, Germany increased its exports to China, which rose by 5.4% from July to €6.8bn. China also retained its role as Germany’s leading supplier, although imports from the country dropped 4.5% on the month to €13.5bn.
Markets brush off trade weakness as equities hit records
European markets appear largely indifferent to the worsening of Germany’s trade position with the US and the broader decline in exports.
The DAX index climbed to fresh record highs during morning trading on Thursday, breaking above 24,700 points. Shares of Bayer and HeidelbergCement led the gains on the index, rising by 1.8% and 1.4%, respectively.
Elsewhere, the EURO STOXX 50 index also reached historic levels, trading near 5,655 points and posting a gain of more than 5% over the past month.
The broader STOXX 600 index similarly remains near all-time highs although it slipped around 0.3% by late morning.
Geopolitical developments added to market sentiment, as US President Donald Trump confirmed a Gaza peace deal, including the release of hostages.
In France, President Emmanuel Macron is expected to name a new prime minister by Friday as coalition negotiations continue.
