Germany-Iran Trade in Freefall: The Impact of Sanctions and Economic Retreat
Trade between Germany and Iran is shrinking rapidly(Destatis), largely due to the long-term effects of international sanctions. Here are the key takeaways from the latest data:
Exports are Crashing: German exports to Iran dropped by nearly 25% in 2025 and plummeted even further—by almost 50%—in the first two months of 2026. Since 2018, when major U.S. sanctions were reinstated, exports have fallen by a total of 64%.
Iran is Losing Importance: Iran has fallen significantly in the rankings of Germany’s trading partners. In 2018, it was the 51st most important destination for German goods; by 2025, it had dropped to 72nd place.
Companies are Walking Away: Businesses are increasingly avoiding the Iranian market. Between 2018 and 2024, the number of German companies exporting to Iran dropped from over 5,300 to just 1,504—a massive 72% decrease.
Dynamic teemap link here:
What is Being Traded?
From Germany to Iran: The main exports are machinery, medicine (pharmaceuticals), and chemicals. However, even machinery exports fell by a third last year.
From Iran to Germany: Most imports are food, particularly pistachios. Germany also buys Iranian carpets and some pharmaceutical products.
Trade Balance: Germany still sells much more to Iran than it buys from it, resulting in a “trade surplus.” However, that surplus is getting smaller every year as the total volume of trade dries up.