China Reclaims Germany's Top Trade Partner Spot Amid US Tariff Strain

China has overtaken the US as Germany's leading trading partner during the first eight months of 2025, as US tariffs dampened German exports. German trade with China reached 163.4 billion euros, surpassing the US total of 162.8 billion euros. The shift reflects Germany's desire to diversify from Chinese dependence amidst political tension.

In a notable shift in global trade relations, China surpassed the United States as Germany's largest trading partner in the first eight months of 2025. This resurgence comes as increased US tariffs have adversely impacted German exports, according to preliminary data from the German statistics office.

During the period from January to August, Germany's trade with China reached 163.4 billion euros, edging past the US total of 162.8 billion euros, as calculated by Reuters. This turnaround follows Germany's efforts to reduce its dependency on China due to political differences, although recent developments have brought China back to the forefront.

The return of Donald Trump to the US presidency has intensified tariff pressures, notably depressing German exports to the United States. Exports have plummeted by 7.4% compared to 2024 figures, with August witnessing a dramatic 23.5% year-on-year drop. As demand for German automobiles, machinery, and chemicals wanes, experts suggest a rebound may not be forthcoming.

(With inputs from agencies.)