Germany reported a 0.6% decrease in exports in July, falling to €130.2 billion, below the expected 2.5% increase. Exports to the US dropped by 7.9% to €11.1 billion, hitting the lowest level since 2021. The Ifo Institute revised its forecast for Germany's growth to 0.2% in 2025 and 1.3% in 2026 due to ongoing trade uncertainty. The EU-US trade deal, which locked in a 15% tariff on most EU exports to the US, has impacted German competitiveness despite avoiding a full-blown trade war. The US economy could slow by 0.7% due to inflation and lower consumer spending, affecting companies like McDonald's and Domino's. Germany's inability to recover from two years of contraction has led to a plummet in investor confidence.