China overtakes US as Germany's top trading partner

BERLIN: China overtook the U.S. 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.

AI Brief

China overtakes the US as Germany's top trading partner in 2025, reversing last years shift.
US tariffs hurt German exports, especially cars and machinery, causing a sharp drop in trade.
Chinese imports surge, raising concerns over dumping prices and growing dependency.

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

The U.S. 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 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 euros. In August, exports to the U.S. fell 23.5% year-on-year, showing that the trend is accelerating.

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

Jandura said that U.S. 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 U.S. 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 euros in the first eight months of 2025.

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

"The renewed import boom from China is worrying," said Brzeski. "Particularly as data shows 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.