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Takeaway

Trade Changes

China overtook the US as Germany’s largest trading partner in the first eight months of 2025, regaining the top spot as higher tariffs weighed on German exports to the United States. German imports and exports with China totalled €163.4 billion ($190.7 billion) from January to August, while trade with the US amounted to €162.8 billion. German imports from China rose 8.3% year-on-year, and exports to China fell 13.5%.

Germany being more trade reliant on China is not going to be good for the country’s industrial sectors which are struggling to recover after years of technology transfer to China, which has led to the Asian nation taking a leading role in many sectors.

As for the US falling below China, this suggests that, despite Donald Trump’s assurances, the new trade tariffs are having a negative impact on US trade with other nations.

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