October 23, 2025

Big news from the world of trade! China is back on top as Germany’s largest trading partner in the first eight months of 2025. This reversal happened because US tariffs hit German exports hard, making America a bit less hungry for German goods. Data from the German statistics office shows that combined German imports and exports with China hit a massive 163.4 billion euros ($190.7 billion) from January to August. That's just ahead of the trade with the US, which stood at 162.8 billion euros. Just last year in 2024, the US had beaten China to become Germany’s top buddy in trade after eight whole years of China’s reign. Berlin was trying to cut trade ties with China due to political fights and accusations of unfair prices and practices. But hold on! When Donald Trump returned to the White House, things flipped again with new tariffs hitting Germany hard. US tariffs have pushed German exports down by 7.4% in the first eight months compared to 2024, sinking to 99.6 billion euros. August was even tougher with a jaw-dropping 23.5% drop in exports to the US compared to the same month last year. Dirk Jandura, president of the BGA foreign trade association, said plainly, "There is no question that U.S. tariff and trade policy is an important reason for the decline in sales." He added that Americans are now buying fewer classic German gems like cars, machinery, and chemicals. Experts don’t see Germany's exports to the US bouncing back soon because of the ongoing tariff threats and a stronger euro, says Carsten Brzeski, global macro head at ING. Meanwhile, German exports to China fell even more sharply by 13.5%, down to 54.7 billion euros. But—here’s the twist!—imports from China jumped by 8.3% to a whopping 108.8 billion euros. "The renewed import boom from China is worrying," warns Brzeski. "Particularly as data shows that these imports come at dumping prices." This means China is selling goods cheap in Germany to grab market share. This surge in cheap Chinese imports not only makes Germany more dependent on China, but it also puts pressure on German industries that now face tough competition. "In the absence of economic dynamism at home, some in Germany may now be troubled by any shifts on world markets," says Berenberg economist Salomon Fiedler. In short, Germany is in a tricky dance—squeezed by US tariffs and dazzled (and worried) by China’s cheap goods. Will Germany’s trade story change again soon? Stay tuned!

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Tags: Germany-china trade, Us tariffs, German exports, China imports, Trade war, Economic dependence,