German exports fall more than expected in May

German exports fell more than expected in May as demand from the United States decreased for the second consecutive month following a period of strong purchases in anticipation of U.S. tariffs, official data showed on Tuesday.

Exports fell by 1.4% in May compared with the previous month, data from the federal statistics office showed on Tuesday. The result compared with a 0.2% decrease forecast in a Reuters poll.

Imports dropped by 3.8% on the month, the statistics office said.

The foreign trade balance showed a surplus of 18.4 billion euros ($21.60 billion) in May, up from 15.7 billion euros in April.

Exports to EU countries dropped by 2.2% on the month.

"A recovery in this economic region is the basic prerequisite for our exporters to regain their footing," Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said.

Exports of goods to countries outside the EU declined by 0.3% on the month. Exports to the United States decreased by 7.7% compared with April, while exports to China fell by 2.9%.

U.S. President Donald Trump has set a July 9 deadline for the 27-bloc European Union and other trading partners to reach trade deals and avert steep tariffs.

The EU still aims to reach a trade deal by Wednesday after European Commission President Ursula von der Leyen and Trump had a "good exchange," a commission spokesperson said.

The U.S. was Germany's biggest trading partner in 2024 with two-way goods trade totaling 253 billion euros ($277.84 billion). Germany would be badly affected by any tariffs due to its export-oriented economy.

($1 = 0.8519 euros)