In a difficult global environment, the new US policy presents a further challenge for the German economy. Although only one in six small and medium-sized enterprises maintains business relationships in the US, the economic risks are also raising concerns among the remaining businesses. US import tariffs are hitting SMEs’ international business in a phase of weak growth. Their international turnover in 2023 amounted to EUR 698 billion, 0.4% below the previous year’s level in nominal terms. More businesses recorded a decline in international turnover than growth in 2024 as well. Businesses perceive the location conditions in Germany as the greatest burden. In order to turn exports into a growth driver again, it will be necessary to strengthen SMEs’ competitiveness. Removing existing trade barriers in the EU single market also holds great potential for small and medium-sized enterprises in particular.

KfW Internationalisation Report 2025(PDF, 1 MB, accessible)

Press release