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2w ago

Bundesbank Flags Continued Export Market Losses as US Tariffs Approach

Lawmakers are weighing changes to labor incentives, regulatory burdens, energy pricing as a means of protecting export-reliant jobs.

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HAMBURG, GERMANY - OCTOBER 03: Shipping containers stand stacked at Hamburg Port on October 3, 2022 in Hamburg, Germany. The German economy, and German industry in particular, are facing a foreboding combination of skyrocketing energy costs, the possibility of energy shortfalls this coming winter and a likely German economic recession, all of which are consequences stemming from Russia's ongoing war in Ukraine. (Photo by Gregor Fischer/Getty Images)
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WELT-Autor Olaf Gersemann

Overview

  • Bundesbank’s mid-2025 report shows export market shares have fallen steadily since 2017, with steeper declines after 2021 in sectors such as automotive, mechanical engineering, electronics, chemicals and metals.
  • Exports shrank further in 2024 and face fresh pressure from US President Trump’s tariffs on EU goods set to take effect August 1, prompting BASF, Covestro and Brenntag to lower profit forecasts.
  • Export market share losses have trimmed Germany’s GDP by 2.4 percentage points between 2021 and 2024 and threaten to extend economic stagnation into a third consecutive year in 2025.
  • Pandemic-related supply chain disruptions and surging energy costs from the Russia-Ukraine war have deepened competitiveness challenges for German exporters.
  • The Bundesbank urges reforms to boost work incentives, lower energy costs, streamline bureaucracy and ease skilled labor immigration to restore competitiveness and safeguard nearly one in four jobs.