Economic data released by Germany's statistical office on Friday showed a plunge in exports to the United States in 2025, as US President Donald Trump's tariffs upend trade with Europe's largest economy and top exporter.

"As a result of the US government's customs policy, German-American trade relations weakened significantly in 2025," said a Destatis press release.

Destatis data showed German exports to the US fell by 9.4% compared to the January-November 2024 time period, representing some €136 billion worth of goods.

Driven mostly by pharmaceutical products, US exports into Germany rose slightly in the same time period by just over 2%, putting Germany's trade surplus with the world's biggest economy at its lowest level since during the COVID pandemic in 2021.

"In some cases, Germany's most important export industries recorded significant losses in their US business in 2025," Destatis said, adding motor vehicles and motor vehicle parts remained the most important export goods to the US.

German exports have driven the European Union's trade surplus with the US, as Germany is the EU's top exporter to non-euro area countries, with 33.7% of the 2024 total. 

The EU negotiates trade and absorbs tariffs with outside countries as a bloc, but Germany's outsized role as an export powerhouse makes it more vulnerable to shocks, with machinery giants to smaller, family-owned companies taking a hit.

A deal struck in July put a baseline tariff rate of 15% on EU exports to the US. Before Trump's tariffs, the average US rate on EU imports was around 1.4%, according to economics think tank Bruegel.

Amid the tariff strain, China again emerged as Germany's biggest trading partner last year, overtaking the US.

Overall exports buoyed by Europe

However, the data was not all bad news for Germany. The country's overall exports in 2025 were up 1% compared to the previous year, according to seasonally-adjusted figures.

Germany's exports in 2025 totaled €1.5 trillion ($1.77 trillion) — the first sign of export growth in two years.

The light plus was driven by stronger trade from within the EU, with German exports to other EU countries rising around 4% last year. It was also driven by strong December numbers. 

Destatis and German Chamber of Commerce (DIHK) data show European countries bought more of Germany's core industrial goods like machine tools and engineering systems.

Volker Treier, head of global trade at the DIHK, told Reuters news agency that European demand more or less saved German trade in 2025.

"This shows how necessary a German and European economic policy geared toward competitiveness is now," Treier said.

German government eyes 1% growth in 2026

The German government under Chancellor Friedrich Merz has pushed a major public spending drive to jumpstart Germany's ailing economy, with a focus on arms production and infrastructure. Merz's government expects the economy to grow 1% in 2026, after several years at a flatline.

In Abu Dhabi on Friday, wrapping up a three day tour of Gulf countries to shore up arms and energy deals , Merz said recent signs of an economic turnaround "encourage and embolden me to continue on this path of reforms and of changing the conditions for investment and for jobs in Germany."

"We are still far from where we want to be, but we are on the right path," he said.

Edited by: Zac Crellin