Poland replaced Germany in exports to the United States. Trump's tariffs have been caught up
German exports to the USA fell in October by as much as EUR 1.1 billion (-8.4%) year-on-year to EUR 12.2 billion. This is a consequence of the tariffs imposed by the Donald Trump administration on most countries in the world. The EU received a basic rate of 15%. and 25 percent for cars, which can still be considered a relatively low level.
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Sales of German products to China also looked worse, as they bought them for EUR 6.5 billion, i.e. EUR 604 million (-8.5%) less year-on-year.
Poland is making up for the losses of German exporters
Despite the decline, the United States remained the leader among recipients of “made in Germany” products, but this position is already under threat. There are three countries that are able to become leaders in receiving exports from Germany Poland is among them. While exports from Germany to the USA decreased by EUR 1.1 billion year on year, they increased by almost the same amount to: France, Switzerland and Poland.
France, the second largest buyer of German products, bought them for EUR 11 billion, i.e. EUR 1.1 billion more year-on-year (+10.6%), the second Netherlands – for EUR 10.1 billion, i.e. EUR 782 million more y-o-y (+8.4%), and the third Poland – for EUR 9.5 billion, i.e. EUR 924 million more y-o-y (+10.8%). Germany's exports to Switzerland, which is seventh on the list, increased even more than to Poland, by EUR 1 billion 29 million year on year (+18.2%) to EUR 6.7 billion.
Thus, German factories compensated for the decline in American exports in Europe, including Poland. As a result, German exports, instead of falling, as they theoretically should have done after the introduction of customs duties at the main recipient, increased.
The value of all goods exports in October amounted to EUR 139 billion, i.e. 4.1 percent. more year to year. Imports did not grow as fast (+2.8% y/y), as a result, the surplus of exports over imports amounted to EUR 17.3 billion and was 14.5% higher. rdr.
If the German economy has any problems, it is not because its exports are not performing well on world markets. Net exports even improve the GDP ratio.
If not cars, then something else
The problem is that sales abroad of the basic product of the German economy, the one with high added value, i.e. cars, decreased. Germany exported them in October EUR 22.6 billion and it was EUR 772 million less year on year (-3.3%).
However, this loss was more than made up for by the exports of our western neighbor's second export hit, i.e machines. They were sold for as much as EUR 22.2 billion, which is EUR 817 million more year on year (+3.8%).
Sales of the third largest export from Germany, i.e., also increased significantly electrical engineering. Its exports amounted to EUR 15.6 billion and were EUR 1.2 billion higher year on year (+8.2%).
Although the automotive and chemical sectors may have problems (exports decreased by 11% to EUR 1.9 billion), other sectors more than made up for it. In addition to the above-mentioned successes, the export of pearls, stones and precious metals is also successful. It grew by as much as EUR 927 million year on year (+39.5%) to EUR 3.3 billion and thus Germany is occupying a market previously dominated by Great Britain.
Author: Jacek Frączyk, editor of Business Insider Polska
