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German Mittelstand Cuts Back Abroad as Geopolitics and US Trade Policy Bite

KfW figures show a 13% drop in active exporters last year with widespread alarm over planned US tariffs

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Overview

  • German mid-sized exporters active abroad fell from 880,000 in 2022 to 763,000 in 2023, reducing their share of the Mittelstand from 23% to 20%.
  • Total foreign sales dipped to €698 billion as many firms exited overseas markets under tougher external conditions.
  • Companies still trading internationally expanded export revenues to account for 29% of their total turnover.
  • A January 2025 KfW survey found 25% of exporters saw foreign sales decline in 2024, while 21% reported growth.
  • Among firms with US operations, 43% expect negative effects from Donald Trump’s proposed tariff increases.