Germany’s exports decline for first time in five months as China demand craters

Europe’s largest economy just hit a speed bump. German exports fell 0.8% month-on-month in July 2026, dropping to €138.2 billion and snapping a five-month growth streak, according to data from the Federal Statistical Office (Destatis). The culprit is a familiar one: China. Shipments to Beijing fell 9.5% in a single month, landing at €5.6 billion. Euro-area exports weren’t much better, declining 2.8% to €53.9 billion. The one bright spot was the United States, where German exports surged 19.1% to €14.4 billion, a figure that’s up 28.3% year-on-year. The numbers behind the slowdown The July decline marks Germany’s first export contraction since January 2026. Imports told an even more dramatic story, falling 5.7% in July. That pushed Germany’s trade surplus to €21.3 billion, up sharply from €15.4 billion in June. The longer view still looks respectable. Total exports from January through July 2026 reached €954.2 billion, a 4% increase compared to the same period last year. China’s cooling appetite and the US wildcard The eurozone weakness is arguably more concerning from a macro perspective. A 2.8% decline in exports to Germany’s closest trading partners suggests the broader European ...