Germany's trade dynamics have undergone another significant shift, with China taking over as its largest trading partner. According to recent data from the German statistics office, China now boasts a total of $190.7 billion in exports and imports to Germany over the first eight months of 2025, surpassing the US, which once held this title.
The change is attributed largely to US President Donald Trump's return to the White House, coupled with his renewed tariff campaign against Germany. As a result, German exports to the US plummeted by 7.4 percent in the same period compared to 2024, with August seeing a decline of 23.5 percent year-on-year.
Experts attribute this downturn in sales primarily to Trump's tariffs, which have significantly impacted classic German export goods such as cars, machinery, and chemicals. This loss in demand has been accelerated by ongoing tariff threats and the stronger euro, leaving little room for recovery in the near future.
Meanwhile, imports from China skyrocketed 8.3 percent year-on-year to $126.4 billion (108.8 billion euros), largely due to dumping prices that have raised concerns about German dependence on Chinese suppliers. Economists warn this trend could lead to stress in industries where China has become a significant rival and may even detract from the nation's economic dynamism.
Germany had previously sought to reduce its reliance on China, citing political differences and unfair trade practices by Beijing. However, the shift now shows that economic factors can override such diplomatic tensions when it comes to international trade dynamics.
The change is attributed largely to US President Donald Trump's return to the White House, coupled with his renewed tariff campaign against Germany. As a result, German exports to the US plummeted by 7.4 percent in the same period compared to 2024, with August seeing a decline of 23.5 percent year-on-year.
Experts attribute this downturn in sales primarily to Trump's tariffs, which have significantly impacted classic German export goods such as cars, machinery, and chemicals. This loss in demand has been accelerated by ongoing tariff threats and the stronger euro, leaving little room for recovery in the near future.
Meanwhile, imports from China skyrocketed 8.3 percent year-on-year to $126.4 billion (108.8 billion euros), largely due to dumping prices that have raised concerns about German dependence on Chinese suppliers. Economists warn this trend could lead to stress in industries where China has become a significant rival and may even detract from the nation's economic dynamism.
Germany had previously sought to reduce its reliance on China, citing political differences and unfair trade practices by Beijing. However, the shift now shows that economic factors can override such diplomatic tensions when it comes to international trade dynamics.