Significant drops observed in Southwest goods exports to both the USA and China

Decline in Southwest's Export Trade with the USA and China Marked by Substantial Reduction - Decline in Export Rates to the US and China for Southwest Observed Significantly

In the first half of 2023, the German state of Baden-Württemberg has witnessed a shift in its export patterns. While some markets have shown promising growth, others have experienced a decline, particularly in exports to the United States.

According to the BWIHK in Stuttgart, Baden-Württemberg's exports to the USA decreased by approximately 10% in the first half of the year. This decline is not limited to one industry, as the pharmaceutical, automotive, and mechanical engineering sectors have all seen a drop in exports.

The pharmaceutical industry, in particular, has seen a decrease of 13% in exports to the USA. However, exports to Switzerland, the most important country of origin for Baden-Württemberg's imports, have increased by 19 percent, making pharmaceutical products the most important commodity group in bilateral trade between the two countries.

The automotive industry has also taken a hit, with a decrease of 11% in exports to the USA. The US auto market is undergoing changes due to the rapid rise of new providers, which may be contributing to this trend. Simultaneously, exports to China have decreased by more than 16% in the same period, mainly due to a significant drop in auto sales (down 40%).

In contrast, Baden-Württemberg's foreign trade stagnated in the first half of the year. However, there are signs of recovery in other markets. Exports to Spain, Poland, Austria, Italy, and France have grown respectively by 8.4 percent, 6.1 percent, 4.3 percent, 2.8 percent, and 1.2 percent.

In recent months, countries in the EU have shown significant import growth to Baden-Württemberg. Notable double-digit increases in March were recorded for the UK (+24.2%), Spain (+17.9%), Netherlands (+16.1%), Switzerland (+13.2%), Czech Republic (+11.2%), and Italy (+10.3%) in electrical and electronic products. Additionally, Poland (+9.6%), Turkey (+6.5%), France (+1.8%), and Austria (+0.7%) also recorded increases.

Claus Paal, Vice President of the BWIHK, mentioned that the export weakness to the USA began two years ago. He also stated that neighboring countries are currently helping to mitigate global uncertainties. Many companies in the US mechanical engineering sector are relying more on their own capacities or Asian suppliers, according to the report.

No new information about the trade dispute or economic slowdown was provided in the report. However, Paal emphasised that the industry is working to adapt and find new markets to offset the decline in exports to the USA. The industry's resilience and adaptability will be crucial in navigating these challenging times.