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China passes US to return as Germany's top trade partner Frankfurt, Germany, Nov 19 (AFP) Nov 19, 2025 China has reclaimed its title as Germany's top trading partner, dethroning the United States after President Donald Trump launched his tariff onslaught, official data showed Wednesday. Total trade between Europe's biggest economy and China from January to September this year grew slightly to nearly 186 billion euros ($215 billion), according to federal statistics agency Destatis. In the same period, the figure for trade between Germany and the United States dropped by almost four percent to just under 185 billion euros, it said. China had already been Germany's top trading partner from 2016 to 2023 but the United States jumped into the top spot in 2024, as Berlin sought to reduce a long-standing economic reliance on China. The development "reflects the negative impact that US tariffs are having on German exports to the US," ING economist Carsten Brzeski told AFP. Under a deal struck in July, EU exports to the United States face a baseline levy of 15 percent -- far higher than before Trump's return to office. The tariffs are a heavy burden for the already struggling German economy. The US remains Germany's top export market, for goods ranging from cars to pharmaceuticals, and Germany runs a hefty trade surplus with the United States.
"It shows the ongoing dependence of the German economy and particularly industry on rare earths, semiconductors and other input goods from China," he said. Germany runs a substantial trade deficit with China. The latest Destatis figures showed Chinese imports to Germany rose by 8.5 percent over the first nine months of the year, while German exports to China fell sharply. This comes as Chinese manufacturers, stung by high US tariffs, redirect their goods to other markets, and Chinese companies have emerged as rivals to German firms in many sectors. Some economists said the trend was not necessarily bad news, however. "One could argue that the rising Chinese imports are increasing the leverage Germany (and Europe) has vis-a-vis China," Dirk Schumacher, chief economist from German public lender KfW, told AFP. The news came as Lars Klingbeil, Germany's finance minister and vice chancellor, was wrapping up a trip to China, the first visit by representatives of Germany's ruling coalition, which took power in May. Speaking to reporters in Shanghai, where he had met representatives of German companies, Klingbeil said it was clear from his visit that Chinese officials wanted to keep lines of communication open. But he added that Germany needed "open access, which means that competition must be fair and that there must be access to rare minerals and raw materials". China this year tightened controls over rare earths exports, crucial in many industries. However, under a tentative deal reached last month after talks between the Chinese and the US president, Beijing agreed to suspend some restrictions for one year. Problems in traditional trading relationships are among the many problems facing Germany, which is expected to just eke out meagre growth this year after two years of recession. sr/fz/gv |
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