German exports to the United States have dropped sharply for two consecutive months, reaching their lowest level in over three years.
According to data released by the German Federal Statistical Office on July 8 (local time), Germany's exports to the US in May 2025 amounted to 12.1 billion euros (approximately 19.5 trillion won), marking the lowest figure since March 2022, when exports totaled 11.9 billion euros (about 19.1 trillion won).
Exports to the US in May decreased by 7.7% compared to the previous month and by 13.8% compared to the same month last year. In April, exports had already fallen by 10.5% from the previous month. Imports also declined by 10.7% over the month, totaling 7.4 billion euros (approximately 11.9 trillion won).
As exports to the US, Germany's largest trading partner, slowed, Germany's total exports also decreased by 1.4% from the previous month to 129.4 billion euros (about 208 trillion won).
In the first quarter of this year, Germany exported 41.2 billion euros (about 66.2 trillion won) to the US, recording a trade surplus of 17.7 billion euros (about 28.5 trillion won), as orders surged ahead of tariff implementation. Of this surplus, the automotive sector accounted for 7.8 billion euros (approximately 12.5 trillion won), nearly half of the total.
However, since April, a range of tariffs have been imposed, including a 10% basic tariff, 25% on automobiles and parts, and 50% on steel and aluminum, leading to a sharp decline in exports.
Currently, the European Union (EU) is negotiating tariffs with the US on key items such as automobiles, steel, and aircraft. The EU is willing to accept the 10% basic tariff applied to all countries, but is requesting exemptions for certain items, including aircraft, wine, and spirits.
According to Politico Europe, the US has proposed to the EU that aircraft and spirits be exempted, while maintaining the 10% basic tariff. However, the US has not yet responded positively to the EU's requests for tariff exemptions on automobiles, steel, aluminum, and pharmaceuticals.
The EU is seeking ways to reduce the existing tariff burden, such as applying tariffs lower than 25% to European companies exporting automobiles from the US to third countries. The German industry has called for tariff reductions, arguing that vehicles produced in US-based plants and exported contribute to improving the US trade balance. In May, the US set a precedent in its trade agreement with the UK by applying a 10% tariff, instead of 25%, on up to 100,000 automobiles.
EU officials have stated that they aim to reach a fundamental agreement by July 9 and indicated that they will not accept any new tariff-related letter from President Trump, suggesting that an agreement may be reached soon.
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