China has overtaken America to become Germany’s largest trading partner.
At last China showed America its worth. Now China is planning to rule a large part of the world with the help of Europe’s largest economy. In fact, according to preliminary data from the German Statistics Office, China has overtaken the US as Germany’s largest trading partner in the first eight months of 2025 and has once again reached the top position. The biggest reason for this is American high tariffs, which put pressure on German exports. Let us also tell you what kind of story the German figures are telling?
China becomes the biggest trading partner
According to Reuters calculations, Germany’s imports and exports with China totaled 163.4 billion euros ($190.7 billion) from January to August, while trade with the US stood at 162.8 billion euros. America was Germany’s top trading partner in 2024, ending China’s eight-year streak. The change comes as Germany tries to reduce its dependence on China, with Berlin citing political differences and accusing Beijing of unfair treatment. However, the trade dynamics changed again this year with Donald Trump’s return to the White House and the renewed imposition of tariffs.
Impact of US tariffs on German exports
Germany’s exports to the US have declined due to tariffs, which fell by 7.4 percent to 99.6 billion euros in the first eight months of the year compared to 2024. In August, exports to the US fell 23.5 percent year-on-year, indicating that this trend is accelerating. Dirk Zandura, president of the BGA Foreign Trade Association, said there is no doubt that US tariffs and trade policy are a significant reason for the decline in sales.
Zandura said demand for traditional German export products such as cars, machinery and chemicals in the US has declined. Carsten Brzeski, global head of macro at ING, said that with the ongoing threat of tariffs and a strong euro, German exports to the US are unlikely to recover any time soon.
Boom in sugar imports in Germany
Exports to China have declined even more than exports to the US, falling 13.5 percent year-on-year to 54.7 billion euros in the first eight months of 2025. In contrast, imports from China increased by 8.3 percent to 108.8 billion euros. Brzeski said that the resurgence in imports from China is worrying. Especially because statistics show that these imports are taking place at dumping prices.
He warned that this would not only increase Germany’s dependence on China, but could also increase pressure on key industries where China has become a major rival. Berenberg economist Salomon Fiedler said that due to the lack of economic dynamism at home, some people in Germany may now be nervous about any changes in world markets.