Domestic shift in export strategy proposed by IHK expert
In the evolving landscape of global trade, German companies are adjusting their strategies to navigate the complexities of tariffs and trade wars.
While there are no tariffs on trade with EU neighbors, there are other differences to consider in contract design. This is especially true as EU exports are growing, supported by stable or expanding trade policies and stronger regional demand. In June 2025, exports to EU countries rose by 2.4%, including a 3.1% increase to Eurozone nations and a 1% rise to non-Eurozone countries [1][2].
On the other hand, exports to the US are declining, primarily due to tariff measures and trade disputes. German exports to third countries like China and Russia show moderate growth, with shipments to Russia rising 10.3% and to China 1.1% in June 2025 [1][2]. This trend suggests a strategic shift towards diversification, with German companies increasingly looking towards emerging markets like India and Africa.
Regarding Canada, detailed current export numbers are not explicit in the available data. However, given Canada's trade proximity and agreements with the EU (like CETA), German exports to Canada likely benefit from tariff reductions and stable trade relations within the broader North American context, even as US tariff tensions affect nearby markets [3][5].
For India and Africa, there is an emphasis in 2025 trade policy and business trends on diversification and expansion. This is driven by "green infrastructure investments unlocking African and Asia-Pacific trade" and the strategic push for digital corridors and partnerships [3]. The EU aims to scale Carbon Border Adjustment Mechanism (CBAM) compliance and invest in green corridor infrastructure (ports, rail, renewables) in Africa and parts of Asia to enhance trade [3]. This suggests German companies are increasing engagement in India and Africa, leveraging sustainability credentials and infrastructure investments as competitive advantages amidst global trade uncertainties.
In conclusion, German companies are reinforcing their position within the EU, adjusting to lower exports in tariff-affected markets like the US, and expanding in India and Africa through green and digital trade initiatives. The EU and India aim to find a trade agreement by the end of the year, and local chambers can help with these differences, as they are networked with the 140 foreign trade chambers worldwide.
Meanwhile, Brussels is strengthening talks with the Philippines and Thailand, resuming talks with Malaysia, and considering Indonesia a highly interesting partner. The EU Commission has also resumed talks with Mexico and plans to refresh an old trade agreement. As global conflicts arise, Brussels is planning to invest more in EU infrastructure.
In Germany, Marc Bauer from the Industry and Commerce Chamber (IHK) Region Stuttgart stated that inquiries about exports have increased. Bauer suggests that companies may need to hire more export specialists in sales to address these challenges. The trade volume between the EU and India is still limited compared to the size of the market, but Germany Trade and Invest reports that Africa has immense potential for food, infrastructure, energy, medical technology, consumer goods, and digitalization.
Lastly, it's worth noting that most EU member states are developing positively, unlike Germany. The common euro in many countries prevents currency fluctuations from burdening calculations in the internal market. However, market access for beef and mutton has failed between the EU and India due to an agreement with Australia. The Canadians are currently consistently boycotting goods from the United States.
[1] German Federal Statistical Office (Destatis) [2] Eurostat [3] European Commission [4] German Trade and Invest (GTAI) [5] European Union - Canada Comprehensive Economic and Trade Agreement (CETA)
The finance department of German companies may need to allocate resources to hire more export specialists in sales, given the Increase in inquiries about exports. In the future, these companies might also need to invest in green and digital trade initiatives to expand their presence in emerging markets like India and Africa, as these regions focus on diversification and expansion driven by sustainable infrastructure investments.
