• China trade with Germany valued at 163.4 billion euros from January to August compared to 162.8 billion euros with United States
• German exports to US fell 7.4% in first eight months as Trump administration tariffs dampened bilateral trade relations
• Imports from China surged 8.3% despite Berlin’s stated efforts to reduce economic dependence on Beijing over political differences

BERLIN (TDR) — China unseated the US as Germany’s top trading partner, according to data from the first eight months of the year released by the German statistics office. The shift marks a reversal from 2024, when the US had ended an eight-year streak for China as Germany’s primary trade partner.

“There is no question that US tariff and trade policy is an important reason for the decline in sales,” said Dirk Jandura, president of the BGA foreign trade association told Reuters, citing President Trump‘s sweeping tariff agenda. China’s trade relationship with Germany was valued at 163.4 billion euros ($190.7 billion) based on imports and exports from January to August compared to their partnership with the US that amounted to 162.8 billion euros, according to Reuters calculations.

Tariffs dampen German exports to America

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. The decline accelerated in August, with exports dropping 23.5% year-on-year. With the ongoing tariff threat and the stronger euro, German exports to the US are unlikely to rebound any time soon, said Carsten Brzeski, global head of macro at ING.

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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 Trump’s return to the White House and renewed tariffs targeting European goods, particularly automobiles, machinery and chemicals.

Chinese imports surge despite de-risking efforts

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, creating a significant trade imbalance that concerns German economists.

“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, particularly in electric vehicles, solar panels and advanced manufacturing.

Germany caught between competing powers

The development highlights the vulnerability of Germany’s export-driven economy and the limits of Europe’s de-risking strategy from China. Germany, Europe’s largest economy, has been caught between competing economic and political pressures as the US and China vie for global trade dominance.

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“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. The shift underscores how US protectionism and China’s pricing power are reshaping global trade flows.

Germany is expected to pursue renewed trade talks with Washington while quietly maintaining economic links with Beijing. The European Union may explore collective responses to US tariffs and accelerate diversification into Asian and Latin American markets, but for now, China’s trade influence over Germany has returned to the top position it held for most of the past decade.

The US was Germany’s top trading partner in 2024, ending an eight-year streak for China as Berlin implemented policies aimed at reducing economic exposure to Beijing amid concerns over human rights, technology transfer and fair trade practices.

Can Germany balance economic interests with both superpowers amid escalating trade tensions?

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