Germany's Exports Recovered In May
German exports rose in May, while the growth in imports slowed down. According to data from the Destatis statistical office, German exports increased by 1.8% in May after a decline of -0.3% in April. Economists expected the growth rate of 0.7%. Meanwhile, imports increased by 0.7% in May after growing by 2.2% in the previous month. Economists predicted a drop of -0.3%.
As a result, the German seasonally adjusted trade surplus widened to 20.3 billion euros ($23.90 billion) in May from 19.0 billion euros in April. Economists forecast of 20.0 billion euros. Germany's wider current account surplus, which measures the flow of goods, services and investments, fell to 12.6 billion euros from 23.5 billion euros in April, unadjusted data showed.
Last month, US President Donald Trump threatened to impose a 20% import tariff on all EU-assembled vehicles, which could upend the industry’s current business model for selling cars in the United States. Trump also hit the EU, Canada and Mexico with tariffs of 25% on steel and 10% on aluminum at the start of June. Last week, German finance minister Olaf Scholz warned that US tariffs on goods imported from trade partners like China and the European Union, would damage everyone.