German media: German exporters face setbacks in the US and Chinese markets

According to the German magazine "Manager Magazin": German exporters have been hit by the US and Chinese markets. In the first seven months of this year, exports from Germany to the United States and China have dropped significantly. On one hand, due to high tariffs in the US, on the other hand, Chinese consumers are choosing more "Made in China".

Germany once again faces tariff strikes in its business with its most important trade partner, the United States: The trade surplus with the US fell to the lowest level since 2021 during the period from January to July this year.

According to the German Federal Statistical Office, the trade surplus with the US for the first seven months of this year was 34.6 billion euros, a decrease of more than 15% compared to the same period last year.

In global goods trade, Germany's export surplus decreased by 32.7 billion euros, down 21.2%, to 121.3 billion euros. One reason is that the European largest economy Germany imports more goods from China than it exports to China.

In trade with China, Germany recorded the highest import deficit since 2022 in the first seven months of this year: 47.7 billion euros. Compared to the same period last year, it increased by 16.7 billion euros, an increase of more than half. This once again reflects the results of the "Made in China - 2025" strategy, which aims to ensure China's dominance in key industries.

"The foreign trade data released today highlight the significant impact of current changes in the geopolitical economic landscape on the German economy," said Sebastian Dullien, scientific director of the Institute for Macroeconomic Research (IMK) at the Hans-Böckler Foundation. "In the coming months, German exports can only see a slight recovery at best."

Since August 7, the United States has imposed a 15% tariff on most imports from the EU. Earlier in early June, US President Donald Trump had already raised steel and aluminum tariffs to 50%. Trump accused Europe of "taking advantage of the US" and hopes to force global trade to be more balanced through higher import tariffs. Whether this strategy will work in the long term remains unknown.

"The clear losers in this trade war are American consumers and foreign exporters," said Arno Kuhnhenn, head of corporate research at Allianz Trade. "In most cases, they end up paying the bill." The proportion is as high as 77%.

According to Allianz Trade's analysis, foreign exporters mainly reduced prices in areas such as pet feed, sugar, paper, snacks, frozen food, and noodles to offset additional tariff costs.

At the same time, many American companies have used higher import tariffs to increase their own profits. "Especially in areas such as coffee, beverages, consumer electronics, clothing, sports equipment, toys, and jewelry, the price increases for end consumers in the US exceeded the increase in import costs," explained Kuhnhenn.

Despite the decline in exports, the US remains Germany's top trading partner for trade surplus. However, doing business with this key market is becoming increasingly difficult due to the increase in tariff barriers.

Original: www.toutiao.com/article/1843918666086409/

Statement: The article represents the views of the author.