BERLIN: China has reclaimed its position as Germany’s top trading partner, displacing the United States after President Donald Trump’s tariff measures took effect.
Official data showed total trade between Germany and China reached nearly €186 billion from January to September, while German-US trade declined by almost 4% to just under €185 billion.
ING economist Carsten Brzeski said the shift “reflects the negative impact that US tariffs are having on German exports to the US”.
Under a July agreement, EU exports to the United States now face a baseline levy of 15%.
The tariffs present a significant burden for Germany’s already struggling economy.
The US remains Germany’s top export market for goods ranging from cars to pharmaceuticals.
The development also illustrates Germany’s challenge in reducing its deep economic ties with China.
Brzeski noted it shows “the ongoing dependence of the German economy and particularly industry on rare earths, semiconductors and other input goods from China”.
Germany maintains a substantial trade deficit with China, while running a hefty surplus with the United States.
LBBW bank analyst Jens-Oliver Niklasch said this reliance is particularly difficult as “China is now perceived more as a competitor than as a trading partner”.
Many Chinese firms have emerged as direct competitors to top German companies in recent years.
The news comes as Finance Minister Lars Klingbeil visits China this week, becoming the first representative of Germany’s ruling coalition to travel to the world’s second-largest economy.
Germany faces multiple economic challenges including problems in traditional trading relationships.
The country is expected to record only meagre growth this year following two years of recession.
Chancellor Friedrich Merz has pledged to revive the economy through a debt-fuelled spending programme focused on defence and infrastructure.
