Germany’s Trade Slump Deepens as Exports to U.S. Plummet 20% Amid Tariffs and Strong Euro

Germany's export engine sputtered in August, with shipments to the U.S. collapsing 20% year-on-year to €10.9 billion—the fifth consecutive monthly decline. The Federal Statistical Office reported a 2.5% month-on-month drop, while imports from America grew 3.4% to €8 billion, exacerbating the trade imbalance.

Commerzbank economist Ralph Solveen warns the bleeding won't stop soon. 'The double whammy of Trump-era tariffs and a strengthening euro has throttled trade flows,' he noted. The euro's 14% rally against the dollar since January compounds pain for German manufacturers.

While EU trade cushions the blow, the U.S. remains Germany's top partner. The widening surplus—now at €16.8 billion as imports fell faster than exports—signals weakening global demand. August's export volume marks a four-year low, with industrial goods bearing the brunt.