China has overtaken the United States as Germany’s largest trading partner in the first eight months of 2025. The shift follows a sharp decline in German exports to the U.S. after President Trump reintroduced tariffs, while imports from China surged despite Berlin’s ongoing efforts to reduce economic dependence on Beijing.
Why It Matters
The reversal underscores how U.S. protectionism and China’s pricing power are reshaping global trade flows. For Germany, it highlights the vulnerability of its export-driven economy and the limits of Europe’s “de-risking” strategy from China. The development also raises questions about Europe’s role in an increasingly polarized global economy.
German exporters, facing falling U.S. demand for cars, machinery, and chemicals.
Trump administration, using tariffs to pressure foreign producers and boost U.S. industry.
Chinese manufacturers, benefiting from growing exports to Europe, often at low prices.
EU policymakers, caught between maintaining transatlantic ties and managing China exposure.
What’s Next
Germany is expected to pursue renewed trade talks with Washington while quietly maintaining economic links with Beijing. The EU may explore collective responses to U.S. tariffs and accelerate diversification into Asian and Latin American markets but for now, China’s trade influence over Germany is back on top.
With information from Reuters.
