Latest news with #KlausWohlrabe
The Star
08-07-2025
- Business
- The Star
German exports to U.S. plunge in May as tariff pause nears expiry
BERLIN, July 8 (Xinhua) -- German exports to the United States fell sharply in May, hitting their lowest level in more than three years as the threat of new tariffs continued to cast a shadow over Europe's largest economy. Data released Tuesday by the Federal Statistical Office showed that exports to the United States slumped by 13.8 percent year-on-year. On a monthly basis, shipments fell by 7.7 percent, marking the lowest level since March 2022. Although the United States remains Germany's largest single export market, its share has been shrinking amid ongoing trade tensions. Imports from the United States also decreased in May, falling 10.7 percent from April, pointing to a broader weakening in bilateral trade flows. The data comes just ahead of a looming deadline for potential punitive tariffs from Washington. In April, the U.S. administration announced the introduction of so-called "reciprocal tariffs" on imports from the European Union (EU). Initially scheduled for implementation on July 9, the measures were later postponed to Aug. 1. Currently, the United States levies 25 percent tariffs on European cars and car parts, and 50 percent on steel and aluminum products, raising concerns among exporters. Germany's ifo Institute reported that export expectations among German companies weakened further in June, with its outlook index falling to -3.9 points from -3 points in May. "The tariff threats from the U.S. are still on the table," said Klaus Wohlrabe, head of surveys at ifo. "An agreement between the EU and the U.S. has yet to be reached, and this uncertainty is lowering exporters' expectations." Overall, Germany's exports declined by 1.4 percent month-on-month in May, the statistics office said. Carsten Brzeski, global head of Macro for ING Research, said German exports continue to face significant headwinds. "The risk of further tariffs hangs like a sword of Damocles over German and European exporters," he noted, adding that the strengthening euro against the U.S. dollar also adds to the concerns. Brzeski warned that trade uncertainty and currency pressure could further increase the risk of stagnation or even contraction of the German economy in the second quarter.
Canada News.Net
27-06-2025
- Automotive
- Canada News.Net
German export outlook slips on trade fears survey
Automakers and chemical firms report sharp declines in sentiment amid ongoing trade uncertainty, according to Ifo Expectations have worsened among German exporters in June due to uncertainty regarding US tariffs, according to a survey conducted by the Ifo economic institute. Earlier this year, US President Trump imposed 20% tariffs on EU goods and 25% duties on steel, aluminum, and cars. Brussels prepared retaliation, but most of the new levies were paused for 90 days to allow talks. A 10% base tariff and targeted 25% duties remain unchanged. "The tariff threats from the US are still on the table. An agreement between the EU and the US has yet to be reached," Klaus Wohlrabe, head of Ifo surveys, said in a statement on Wednesday. "This uncertainty is lowering exporters' expectations." According to the report, the mood among export companies has "clouded over," with the export expectations index falling to -7.4 points in June from -5.0 in May. The index measures how optimistic or pessimistic German manufacturing companies are about their prospects for selling abroad over the next three months. The trade barriers have raised concerns in German industry, especially the automotive sector, which is grappling with declining sales, growing competition from China, and the shift to e-mobility. Carmakers worry that tariffs could damage their vital export business. "Companies fear that the growing protectionism around the world will increasingly hamper international trade," said Wohlrabe. The decline was most noticeable in the chemical and automotive sectors, where expectations turned significantly negative, the report said. The US was Germany's top trading partner in 2024, with bilateral goods trade totaling €253 billion (around $280 billion), according to official data. In the first quarter of 2025, the country recorded a €17.7 billion trade surplus with the US-the highest among all its partners. This underscores the potential impact of US tariffs. Experts say the uncertainty has led German companies to delay investments, contributing to the shift in export projections. The new figures add to signs that the EU's largest economy is struggling to build momentum after slipping into a recession last year. Although German GDP grew slightly (by 0.2%) in the first quarter of 2025, weak global demand and uncertainty in trade policy continue to weigh on its economy. The report follows a grim forecast from the IMF, which also cut Germany's 2025 growth outlook to zero, predicting it will be the only G7 economy to stagnate this year as its export-driven industries are especially vulnerable to global trade tensions.
The Star
25-06-2025
- Business
- The Star
Germany's export outlook worsens amid U.S. tariff concerns: ifo
BERLIN, June 25 (Xinhua) -- Export expectations among German manufacturers deteriorated in June as U.S. tariff policies continued to weigh on sentiment across key industries, a survey by the ifo Institute showed on Wednesday. The ifo Export Expectations index fell to -3.9 points in June from -3.0 in the previous month, signaling an overall decline in confidence within Germany's export-driven economy. The apparel sector reported the bleakest outlook, while sentiment also weakened significantly among food and beverage producers, automakers, and metal product manufacturers. Germany's automotive sector, a cornerstone of its industrial base, has faced persistently weak export expectations and remains especially exposed to trade tensions. The United States has already imposed a 25-percent tariff on cars and car parts imported from the European Union (EU). "The tariff threats from the U.S. are still on the table. An agreement between the EU and the U.S. has yet to be reached," said Klaus Wohlrabe, head of surveys at ifo. "This uncertainty is lowering exporters' expectations." Latest data from the Federal Statistical Office showed that German exports dropped by 1.7 percent month-on-month in April, while shipments to the United States, Germany's largest export market, fell sharply by 10.5 percent.
Russia Today
25-06-2025
- Automotive
- Russia Today
German export outlook slips on trade fears
Expectations have worsened among German exporters in June due to uncertainty regarding US tariffs, according to a survey conducted by the Ifo economic institute. Earlier this year, US President Trump imposed 20% tariffs on EU goods and 25% duties on steel, aluminum, and cars. Brussels prepared retaliation, but most of the new levies were paused for 90 days to allow talks. A 10% base tariff and targeted 25% duties remain unchanged. 'The tariff threats from the US are still on the table. An agreement between the EU and the US has yet to be reached,' Klaus Wohlrabe, head of Ifo surveys, said in a statement on Wednesday. 'This uncertainty is lowering exporters' expectations.' According to the report, the mood among export companies has 'clouded over,' with the export expectations index falling to -7.4 points in June from -5.0 in May. The index measures how optimistic or pessimistic German manufacturing companies are about their prospects for selling abroad over the next three months. The trade barriers have raised concerns in German industry, especially the automotive sector, which is grappling with declining sales, growing competition from China, and the shift to e-mobility. Carmakers worry that tariffs could damage their vital export business. 'Companies fear that the growing protectionism around the world will increasingly hamper international trade,' said Wohlrabe. The decline was most noticeable in the chemical and automotive sectors, where expectations turned significantly negative, the report said. The US was Germany's top trading partner in 2024, with bilateral goods trade totaling €253 billion (around $280 billion), according to official data. In the first quarter of 2025, the country recorded a €17.7 billion trade surplus with the US—the highest among all its partners. This underscores the potential impact of US tariffs. Experts say the uncertainty has led German companies to delay investments, contributing to the shift in export projections. The new figures add to signs that the EU's largest economy is struggling to build momentum after slipping into a recession last year. Although German GDP grew slightly (by 0.2%) in the first quarter of 2025, weak global demand and uncertainty in trade policy continue to weigh on its economy. The report follows a grim forecast from the IMF, which also cut Germany's 2025 growth outlook to zero, predicting it will be the only G7 economy to stagnate this year as its export-driven industries are especially vulnerable to global trade tensions.
Reuters
25-06-2025
- Business
- Reuters
German export sentiment takes hit from tariff threat, Ifo says
BERLIN, June 25 (Reuters) - The mood among German exporters darkened in June due to uncertainty regarding U.S. tariffs, according to a survey conducted by the Ifo economic institute. The institute's index for export expectations dropped to -3.9 from -3.0 in May. "The tariff threats from the U.S. are still on the table. An agreement between the EU and the U.S. has yet to be reached," Klaus Wohlrabe, head of Ifo surveys, said in a statement. "This uncertainty is lowering exporters' expectations." President Donald Trump has announced wide-ranging tariffs on trade partners and wants to reduce the U.S. goods trade deficit with the European Union. The trade barriers have alarmed German industry, including carmakers, who worry about the impact on their crucial export business. The two sides are in talks in a bid to reach a deal, but European officials are increasingly resigned to a 10% rate on "reciprocal" tariffs being the baseline in any agreement, five sources familiar with the negotiations told Reuters last week.
