German exports edged up in March, defying fears of a slump due to US tariffs, but imports surged, narrowing the trade surplus. The Federal Statistical Office reported a 0.5% month-on-month increase and a 1.9% year-on-year rise in exports, totaling €135.8 billion.

Imports jumped 5.1% from February and 7.2% from a year earlier, reaching €121.5 billion. The trade surplus fell to €14.3 billion from €19.6 billion in February.

The US remained Germany's top export market, but shipments there dropped sharply. Exports to the US totaled €11.2 billion, down 7.9% month-on-month and 21.4% year-on-year. Exports to China also fell by 1.8%.

Demand shifted toward the EU (up 3.4%) and the UK (up 3.2%). The Iran war has fueled uncertainty, with higher oil prices raising transport costs and weighing on recovery expectations.

The government halved its growth forecast for 2026 to 0.5%. Former US President Donald Trump has threatened new tariffs, raising the risk of a renewed EU-US trade dispute.

The German Chamber of Industry and Commerce now expects exports to stagnate in 2026, down from a previous forecast of 1.0% growth.

Source: www.dw.com