Germany experienced a surprising decline in exports in July, with exports dropping by 0.6% to €130.2 billion, contrary to the expected 2.5% increase. Exports to the US, although still the largest market for German goods, decreased by 7.9% to €11.1 billion, the lowest level since 2021. The Ifo Institute revised its growth forecast for Germany, predicting a growth of 0.2% this year and a decline of 1.3% in 2026. The EU-US trade deal, implementing a maximum 15% tariff on most EU exports to the US, has affected German competitiveness. The US economy is also expected to slow by 0.7% due to inflation and lower consumer spending. Companies like McDonald's and Domino's Pizza might be affected. The overall sentiment and confidence in Germany's economy have significantly decreased.