Germany’s trade relationship with the US remains strong, with the country exporting $161.3 billion worth of goods to its largest market in 22 years.
The United States is the largest market for German exports worldwide, accounting for approximately 10.4% of its total exports in 2024. This significant trade relationship has been a cornerstone of Germany’s economic success.
Germany is one of the world's leading economies, with a strong manufacturing sector and significant contributions to global trade.
The country's economic growth is driven by its highly skilled workforce, innovative industries such as automotive and electronics, and strategic location in the heart of Europe.
According to the World Bank, Germany's GDP (Gross Domestic Product) was approximately $4.24 trillion in 2020.
The country's exports account for over 50% of its GDP, with major trading partners including the EU, China, and the US.
The Extensive Scope of German Exports to the US
Germany exported €161.3 billion worth of goods to the US last year, marking the highest level in 22 years. The country is particularly important for several key sectors:
Germany is one of the world's leading exporters, with a significant portion of its economy driven by international trade.
In 2020, Germany exported over $1.4 trillion worth of goods and services, making it the second-largest exporter in the world after China.
The country's strong manufacturing sector, led by industries such as automotive, machinery, and electronics, is a major contributor to its export success.
Germany's strategic location at the heart of Europe also facilitates trade with neighboring countries.
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Pharmaceutical products: 23.8% of German pharma exports, worth around €27 billion, went to the ‘US’ in 2024.
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Machinery: German machinery, including medical devices and aviation technologies, holds a significant share in the US market.
- Cars: The ‘US’ is also an essential market for German automotive products.
The Impact of Trade Tensions
However, trade tensions between the US and Germany have been increasing due to President Donald Trump’s tariff policies. A 10% tariff on German exports to the US has caused significant uncertainty and risk, posing challenges to trade and investment links. Additionally, a further 20% levy is still looming despite Trump granting a 90-day reprieve last week.
Donald Trump's tariffs were a series of trade policies implemented by the US government during his presidency.
The main goal was to protect American industries and workers from what Trump perceived as unfair foreign competition.
Tariffs, or taxes on imported goods, were imposed on various countries, including China, Canada, Mexico, and the European Union.
The tariffs affected over $360 billion worth of imports in 2018 alone.
Critics argued that the tariffs would lead to higher prices for consumers and harm US businesses that rely on foreign trade.
Economic Consequences
The tariffs have hit sectors such as the pharmaceutical industry and medical technology particularly hard. The ‘US’ is the most important sales market for many export goods from these sectors. Germany’s economy is already struggling with a lack of growth, and economists predict that trade turmoil could put it on track for a third year of recession.
Germany imports €91.5 billion in goods from the US last year, resulting in a trade surplus of €69.8 billion. Despite this, the country still relies heavily on imports from other major suppliers like China and the Netherlands.
