German exports to US hit lowest value since 2022 as tariffs bite

BERLIN (Reuters): German exports to the U.S. plummeted in May, hitting the lowest level in over three years, official data showed Tuesday, as the trade sector took a hit from tariff uncertainty in the crucial U.S. market.

The shipments to the U.S. fell by 7.7% in May compared to April, the German statistics office said, citing the preliminary data.

The value of goods amounted to 12.1 billion euros ($14.2 billion). This was the lowest value since March 2022, and came after the initial April announcement by Trump of sweeping “Liberation Day” tariffs.

The punitive reciprocal rates, which could see EU exports hit with a flat 20% tariff, were first suspended until July 9, before Washington extended the pause till Aug. 1.

Overall, Germany exported a total of 129.4 billion euros’ worth of goods in May, a drop of 1.4% on the previous month.

Analysts surveyed by financial data firm FactSet had expected the trade barometer to stagnate.

ING bank analyst Carsten Brzeski said May’s fall likely reflected a reversal of earlier “frontloading” after American customers had rushed to get orders in before announced tariffs could take effect.

“This effect has now dissipated,” he said, adding that “the risk of (more) tariffs hangs like a sword of Damocles over German and European exporters.”

The White House on Monday said it had sent letters to more than a dozen countries detailing the tariffs they would face if they did not reach new trade agreements with Washington by Aug. 1.

Ongoing trade tensions threaten new pain for export powerhouse Germany, whose economy is already reeling from high production costs and intense Chinese competition in sectors from cars to machine tools.

German Chancellor Friedrich Merz last week called on the EU to strike a “quick and simple” bargain with the U.S., saying Germany’s “key industries” needed clarity.