German exports, factory output fall amid tariff turbulence
German exports and factory output went into reverse in April after big jumps the previous month, data showed Friday, with officials blaming the US tariff blitz for the volatility.
Exports were down 1.7 percent to 131.1 billion euros compared to March, according to preliminary data from statistics agency Destatis.
The drop was driven by a more than 10 percent fall in exports to the United States, with shipments to Germany's top trading partner hitting their lowest level since October 2024.
Shipments to China, another key destination for "Made in Germany" goods, also fell heavily, although they increased slightly to other European Union countries.
Exports had jumped in March as US companies rushed to stock up on German goods, from pharmaceuticals to factory equipment, before US President Donald Trump unleashed his sweeping "Liberation Day" tariffs at the start of April.
German industrial production slid 1.4 percent in April from the previous month, worse than a one-percent decline forecast by analysts surveyed by financial data firm FactSet. The indicator had risen 2.3 percent in March.
The pharmaceutical sector suffered a 17.7 percent drop, following a nearly 20 percent rise in March while the crucial machinery and equipment sector saw a 2.4 percent fall, according to Destatis.
The fluctuations in industrial production in some sectors were likely "a reflection of trade policy uncertainties resulting from US tariff policies," the economy ministry said in a statement.
Franziska Palmas, senior Europe economist from Capital Economics, said Friday's data suggested that "the boost to activity from US tariff front-running is already reversing and that underlying industrial activity remains weak".
The German government has slashed its growth forecast for this year to zero due to the potential impact of the tariffs.
The European Union has been hit by the wave of US levies on imports, while further tariffs specifically targeting the bloc are on hold while officials from both sides try to reach a deal.
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