Background on Key Players and Context
In the first eight months of 2025, China has reclaimed its position as Germany’s leading trade partner, surpassing the United States. This shift comes after a period in 2024 when Germany sought to reduce its reliance on China due to political and unfair trade practices concerns. However, the recent return of Donald Trump to the U.S. Presidency and the reimposition of tariffs have negatively impacted German exports to the U.S.
Trade Figures and Trends
According to preliminary data from the German statistical office, Germany’s trade with China totaled €163.4 billion ($190.7 billion) in imports and exports from January to August 2025, just slightly ahead of its trade with the United States, which amounted to €162.8 billion.
- German exports to the U.S. fell by 7.4% in the first eight months of 2025 compared to the same period in 2024, dropping to €99.6 billion.
- In August alone, German exports to the U.S. plummeted by 23.5% year-over-year, indicating an accelerating downward trend.
Expert Opinions and Analysis
Dirk Jandura, President of the German Foreign Trade Association (BGA), acknowledged that U.S. trade policies and tariffs are significant factors contributing to the decline in German sales.
“There is no doubt that the U.S. trade policy and tariffs are major reasons for the drop in sales,” said Dirk Jandura, President of BGA.
Jandura noted that demand for traditional German export products, such as automobiles, machinery, and chemicals, has decreased in the U.S.
Carsten Brzeski, Global Chief Economist at ING, stated that the ongoing trade threat from the U.S. and the strength of the euro make it unlikely for German exports to the U.S. to recover quickly.
Key Questions and Answers
- Who are the key players mentioned in this article? The key players are Germany, China, and the United States.
- Why is this shift in trade partners significant? This change reflects Germany’s efforts to reduce its dependence on China due to political and trade practice concerns. However, the reimposition of U.S. tariffs has negatively affected German exports to the U.S.
- What are the trade figures indicating about the current state of German-U.S. and German-China trade? In the first eight months of 2025, Germany’s trade with China slightly surpassed its trade with the U.S., with German exports to the U.S. falling by 7.4% compared to the same period in 2024.
- What do experts say about the future of German exports to the U.S.? Experts, like Carsten Brzeski from ING, suggest that the ongoing trade threats from the U.S. and the strength of the euro make a quick recovery in German exports to the U.S. unlikely.
