Saxony's exports to the USA slump due to extra tariffs

Saxony's exports to the USA have slumped following the first tariff increases imposed by US President Donald Trump. In May, the State Statistical Office recorded a drop of a fifth compared to the previous month. Goods worth around 366 million euros were exported. Compared to May 2024, the year-on-year decline amounted to 16%. Looking at the total for the first five months, however, the export volume to the USA this spring was slightly higher than in 2024.

First effects of the tariff policy

From the perspective of Saxony's economic development agency, the first effects of Trump's tariff policy are already becoming apparent in 2025. "Saxony mainly exports automotive products and therefore products from an industry that has been a particular focus of US customs policy in recent months," said a spokeswoman. The figures also showed the uncertainty for companies.

At the beginning of April, Trump announced a global tariff package. After some back and forth, a basic tariff rate of ten percent applied to EU exports to the USA in May, as well as sector tariffs of 25 percent on imports of cars and car parts and tariffs of 50 percent on steel and aluminum products. From August 7, a tariff of 15 percent will apply to EU exports to the United States.

In principle, tariffs are a heavy burden for an export-oriented state like Saxony, according to the economic development agency. However, a spokeswoman did not yet want to assess the customs deal. It depends on the details and the reliability of the agreement.

Other markets in focus

The USA was the second most important export market for Saxon companies last year - after China. From October 2024 to February 2025, the United States even topped Saxony's export statistics for several months. According to figures from the State Statistical Office, exports to the USA rose sharply once again, especially at the beginning of the year. Business in China, on the other hand, weakened over the winter. In the meantime, however, the old situation has been restored.

However, other markets are also increasingly in the focus of Saxon exporters, according to the economic development agency. The annual Foreign Trade Day in Dresden in April showed that there is potential in Europe as well as in growth markets such as India, Japan and Mexico. In general, companies have been increasingly forced to broaden their sales markets since the coronavirus pandemic.