Berlin (Brussels Morning Newspaper) – China surpassed the U.S. to become Germany’s biggest trading partner in the first eight months of 2025, regaining the top position as increased tariffs negatively impacted German exports to the U.S., according to initial data from the German statistics office.
From January to August, German imports and exports with China reached 163.4 billion euros, while trade with the U.S. was slightly lower at 162.8 billion euros, Reuters reported.
In 2024, the U.S. became Germany’s leading trading partner, ending an eight-year period during which China held that position. This change occurred as Germany aimed to lessen its dependence on China, citing political disagreements and criticising Beijing for what Berlin considers unfair trade practices.
Trade dynamics shifted once more this year, driven by Donald Trump’s return to the White House and renewed tariffs.
What role did Trump’s tariffs play in the shift?
Tariffs have caused a decline in German exports to the United States, which decreased by 7.4% in the first eight months of the year compared to 2024, reaching 99.6 billion euros. In August, exports to the U.S. decreased by 23.5% compared to the previous year, indicating that the decline is speeding up.
According to experts, there is no question that U.S. tariff and trade policy is an important reason for the decline in sales. Moreover, U.S. demand for classic German export goods, such as cars, machinery, and chemicals, had fallen. German exports to the U.S. are unlikely to recover soon due to the ongoing tariff threat and the strengthening euro.
On the other hand, German exports to China also declined more sharply than those to the United States, decreasing by 13.5% year-on-year to 54.7 billion euros in the first eight months of 2025. Meanwhile, imports from China increased by 8.3%, reaching 108.8 billion euros.
Why have Chinese imports to Germany increased?
Economists say that a significant undervaluation of the yuan against the euro is also helping to make Chinese imports more affordable. It appears that German companies and consumers are struggling to replace Chinese products. The increase could suggest that China has started shifting trade from the U.S. to Europe, flooding the German and wider European markets with more affordable goods.
German exports to China fell 14.2% to 41.4 billion euros, with exporters struggling amid increased competition from Chinese manufacturers. The sharp decline in exports to China, combined with surging imports, has led to a record trade deficit of 40 billion euros, second only to 2022.
