Iran’s gross domestic product (GDP) in July 2025 contracted by 0.3 percent compared to the same month last year.

While German exports to Iran fell sharply by 18% between January and June 2025, Iran’s exports to Germany remained largely stable.

The trade volume between Iran and EU-27 fell sharply by 22 percent YOY from January to June 2025, amounting to 1.8 billion euros.

The recent agreement between the European Union and the United States, which subjects many European industrial goods to a 15% tariff when traded with the US, has sparked a wave of criticism among German government officials and industry leaders.

The German-Iranian Chamber of Industry and Commerce recently hosted a high-level event attended by the Deputy Foreign Minister and heads of several European joint chambers of commerce.

A last-minute deal, introducing a 15% tariff focused on the energy and defense sectors, has temporarily defused rising tensions between the European Union and the United States.

In the first five months of 2025, trade between Iran and the EU-27 dropped by 18% year-on-year, reaching €1.6 billion.

From January to May 2025, the total trade volume between Iran and Germany amounted to €528 million, representing a 16 percent decrease compared to the same period in the previous year.

Sixty-one major German companies, including Deutsche Bank and Siemens, have announced their readiness to invest €100 billion in Germany’s economy.