Germany’s economic output shrank by more than initially estimated in the second quarter, with industry faring worse than expected as U.S. tariffs hurt exports.

Gross domestic product in Europe’s largest economy fell 0.3% on quarter in the three months to the end of June, according to fresh estimates, a sharper rate than the 0.1% decline initially estimated made last month, statistics agency Destatis said. That performance offset much of the 0.3% increase in GDP in the first quarter.

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Exports of goods fell 0.6% in the quarter as U.S. tariffs began to be felt. The first three months of the year saw a big boost to exports as U.S. firms stockpiled foreign goods to get ahead of the Trump administration’s anticipated tariff announcements.

Industrial production performed worse than first assumed, while household consumption was also revised down, Destatis said. Output in the manufacturing and construction also fared worse than expected, it added.

Write to Ed Frankl at edward.frankl@wsj.com

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