By Alexander Weber

(Bloomberg) — German factory orders kept rising after President Donald Trump’s announcement of US reciprocal tariffs, defying expectations for a setback.

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Demand increased 0.6% in April from the previous month, while economists had predicted a 1.5% decline in a Bloomberg survey. Without large-scale orders, they were still 0.3% higher, the statistics office said Thursday.

The unexpected increase is due to “substantial growth” in demand for computer, electronic and optical products, Destatis said. Orders for aircraft, ships, trains and military vehicles “also had a positive effect.”

The data add to evidence that the full impact of Trump’s tariffs has yet to hit Europe’s economy. While private-sector activity has slowed in the last two months, it continued to expand slightly, according to business surveys by S&P Global.

Frontloading of demand probably played a role in the Germany’s robust first-quarter performance, Bundesbank President Joachim Nagel said last month, adding that he sees momentum weakening during the remainder of the year.

Germany’s manufacturing sector is heavily exposed to the trade tensions because of its reliance on exports. The economy is expected to stagnate this year following two straight years of contraction. But a planned spending boost by the new government should usher in quicker expansion in 2026.

The European Central Bank is also about to provide more support later Thursday with its eighth interest-rate reduction in a year. Economists predict another such move in September.

“The trend in orders is now pointing upwards,” said Commerzbank (CRZBF) Chief Economist Joerg Kraemer. “The German economy is benefiting from the ECB rate cuts, even if Trump’s tariff increases are dampening the upward trend.”

—With assistance from Joel Rinneby, Harumi Ichikura, Kristian Siedenburg, Jana Randow and Mark Schroers.

(Updates with economist comment in final paragraph)

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