Tuesday, 02 January 2024 12:17 GMT

China Surpasses US as Germany's Top Trading Partner


(MENAFN) China has surpassed the United States to become Germany’s primary trading partner in the first eight months of 2025, according to a news agency, which referenced preliminary data from the German statistics office.

This shift is largely attributed to the significant tariffs imposed by the US on European Union (EU) goods during the tenure of former US President Donald Trump.

Currently, most European goods are subject to a 15% tariff, while automobiles face an even higher rate of 25%.

Between January and August 2025, the total trade volume between Germany and China reached €163.4 billion ($190.7 billion), while Germany’s trade with the US amounted to €162.8 billion. German exports to the US saw a decrease, dropping to €99.6 billion, which represents a 7.4% decline compared to the previous year.

This reduction reflects weaker demand for German automobiles, machinery, and chemicals. While German imports of US goods grew by approximately 9% during January-July 2025, as per data from the US, Germany still exports significantly more to the US than it imports, making the 7% drop in exports a notable factor in the overall trade figures.

The impact of US tariffs has caused significant disruptions in global trade, affecting American commerce with multiple nations. Wang Yiwei, the director of the Center for European Union Studies at Renmin University of China, remarked, as reported by a media outlet, that the tariffs contradict the mutual advantages of globalization and bilateral cooperation.

He criticized Washington's trade policies, which he believes undermine these principles.

Carsten Brzeski, the global head of macroeconomics at ING, also told the news agency that a recovery in German exports to the US is unlikely in the foreseeable future.

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