China overtakes United States as Germany’s top trading partner

BERLIN — China overtook the US as Germany’s largest trading partner in the first eight months of 2025, regaining the top spot as higher tariffs weighed on German exports to the United States, preliminary data from the German statistics office showed.

German imports and exports with China totaled €163.4 billion ($190.7 billion) from January to August, while trade with the US amounted to €162.8 billion, according to Reuters calculations.

The US was Germany’s top trading partner in 2024, ending an eight-year streak for China. The shift came as Germany sought to reduce its reliance on China, with Berlin citing political differences and accusing Beijing of unfair practices.

Trade dynamics shifted again this year, however, with Donald J. Trump’s return to the White House and renewed tariffs.

US TARIFFS TAKE THEIR TOLL ON GERMAN EXPORTS
Tariffs have pushed down German exports to the United States, which fell 7.4% in the first eight months of the year compared with 2024 to €99.6 billion. In August, exports to the US fell 23.5% year on year, showing that the trend is accelerating.

“There is no question that US tariff and trade policy is an important reason for the decline in sales,” said Dirk Jandura, president of the BGA foreign trade association.

Mr. Jandura said that US demand for classic German export goods, such as cars, machinery and chemicals, had fallen.

With the ongoing tariff threat and the stronger euro, German exports to the US are unlikely to rebound any time soon, said Carsten Brzeski, global head of macro at ING.

CHINESE IMPORTS TO GERMANY SURGE
Exports to China fell even more sharply than those to the United States, dropping 13.5% year-on-year to €54.7 billion in the first eight months of 2025.

By contrast, imports from China rose 8.3% to €108.8 billion.

“The renewed import boom from China is worrying,” said Mr. Brzeski. “Particularly as data show that these imports come at dumping prices.”

He warned that this not only increased German dependence on China but could add to stress in key industries where China has become a major rival.

“In the absence of economic dynamism at home, some in Germany may now be troubled by any shifts on world markets,” said Berenberg economist Salomon Fiedler. ($1 = 0.8575 euros). — Reuters