German trade surplus narrows considerably in March on higher imports

Overall imports increased by 5.1% on the month while exports were only seen up 0.5% on the month. And when compared to the same month a year ago, imports were markedly higher by 7.2% with exports only up by 1.9% relative to March 2025. While Destatis does not provide a detailed breakdown, it is safe to assume that energy imports were the numbers one factor in driving up German imports for the month. That as prices surged higher amid the US-Iran conflict. Thus, leading to the narrower trade surplus overall - which looks to be a repeat to the time of the Russia-Ukraine conflict. Of note, imports from non-EU countries jumped up considerably by 7.4% on the month. In contrast, exports to these countries fell markedly by 3.3% on the month. On the latter, the most notable is German exports to the US. While it still accounts for the biggest portion of German exports, the total figure fell to €11.2 billion. That represents a 7.9% drop compared to the month before. And when compared to March 2025, it reflects a 21.4% decline after adjusting for calendar and seasonal variations. Amid all the trade and tariffs uncertainty, it is clear that the trade relationship here is changing dramatically relative to a year ago. To put things into context, the last time exports to the US fell more sharply year-on-year was in June 2020 (-27.4%). This article was written by Justin Low at investinglive.com.