German machinery exports rise as companies recover US tariff refunds

German machinery exports rose 6.8% year-on-year in June, according to the mechanical engineering association VDMA. Despite this monthly increase, the first half of the year saw a nominal 0.8% decline in export value, totaling €99.3 billion. VDMA noted that while exports to the US remained stable with a slight 0.5% uptick, exports to China fell by 13.8%. Growth was observed in markets such as India and Canada.

Separately, German companies are recovering hundreds of millions of euros in overpaid US tariffs following a February US Supreme Court ruling. The ruling challenged the legal basis for certain duties, allowing manufacturers to seek reimbursement for previously paid tariffs. These refunds are expected to improve cash flow for companies operating with tight margins, potentially allowing for redirected investment in research, development, and supply chain resilience.