China replaced the United States as Germany’s largest trading partner in the first eight months of 2025, according to Germany’s Federal Statistical Office. Analysts say the shift reflects the growing impact of U.S. tariffs and trade barriers, which are straining transatlantic economic ties and weakening Germany’s export momentum. From January to August, Germany’s exports to the U.S. totaled €101 billion, down 6.5% from a year earlier. Exports in August alone fell 20.1% year-on-year to €10.9 billion, the steepest decline since November 2021. Imports from the U.S. reached €63.4 billion, bringing total bilateral trade to €164.4 billion. By contrast, trade between Germany and China proved more resilient, rising to €166.3 billion during the same period. Under a trade deal that took effect on August 1, the U.S. imposed a 15% tariff on most European Union exports.
Dirk Jandura, President of the Federation of German Wholesale, Foreign Trade and Services, said the U.S. tariff policy was a key factor behind the slump in exports, noting that demand for German-made cars, machinery and chemicals had dropped sharply. According to the Association of the German Chambers of Commerce and Industry, more than half of the German firms it polled plan to scale back trade with the U.S., and roughly a quarter expect to suspend or cancel investment projects there. Economist Hermann Simon said U.S. tariffs have created serious challenges for German exporters, warning that companies losing market share in the U.S. will have to explore other regions to sustain growth. The automotive industry, long a pillar of Germany’s trade surplus with the U.S., has been hit hardest. Since Washington raised tariffs on imported vehicles and related products in April, German car exports have come under sustained pressure. Higher tariffs have driven up prices for German cars and parts in the U.S., prompting Mercedes-Benz, Volkswagen, Bosch, Continental and others to roll out sweeping cost-cutting plans. The Ifo Institute, a German economic think tank, forecast that the German economy will grow only 0.2% in 2025, citing the prolonged drag from tariffs and weak global demand, the China Daily reports.
