China overtakes the US as Germany’s largest trading partner

According to preliminary data from the German statistics office, China surpassed the United States as Germany’s largest trading partner in the first eight months of 2025.

According to Reuters estimates, German imports and exports to China totaled $ 89.7% (163.4 billion euros) between January and August, while trade with the US amounted to $ 89.8% (162.8 billion euros).

In 2024, China’s eight-year trading saga ended with the US becoming its top trading partner. Germany had argued against Beijing’s unfair practices and sought to reduce its reliance on China.

However, with US President Donald Trump’s resumption of the White House and his renewed campaign against tariffs, trade dynamics changed once more this year.

German exports to the US have fallen 7.4% in the first eight months of the year, compared to 2024, as a result of the tariffs.

Exports to the US decreased by 23.5 percent year over year in August, indicating that the trend is growing.

According to Dirk Jandura, president of the BGA foreign trade association, “it is without a doubt that US tariff and trade policy is a significant factor in the decline in sales.”

Jandura added that US demand for vintage German exports like cars, machinery, and chemicals had decreased.

German exports to the US are unlikely to rebound anytime soon, according to Carsten Brzeski, global head of macro at the financial institution ING, given the ongoing tariff threat and the stronger euro.

Exports to China decreased by 13.5 percent year over year, or 57.7%, to $63.5 billion (54.7%), or more than that of the US, in the first eight months of 2025.

By contrast, imports from China rose 8.3 percent to $126.4bn (108.8 billion euros).

According to Brzeski, “the renewed import boom from China is worrying, especially given that data indicates that these imports are priced belowdumping.”

He warned that the trend will increase German reliance on China and put pressure on other important sectors, including those with major rivals.