China has again overtaken the United States as Germany’s largest trading partner: in the first eight months of 2025, trade between Germany and China reached 163.4 billion euros, while Germany’s trade with the United States stood at 162.8 billion. Such data underscore changes in the structure of global trade: in 2024 the United States led, but then China surpassed them amid Berlin’s efforts to reduce dependence on the Chinese economy.
At the same time, political disagreements and accusations of unfair practices by Germany also affected the dynamics of bilateral trade.
Subsequently, the return of Donald Trump to the presidency and the introduction of tariffs changed the trajectory of engagement. In the first eight months of 2025, German exports to the United States fell by 7.4%, and in August by 23.5% compared with the previous year.
“There is no doubt that the tariff and trade policy of the United States is an important reason for the decline in sales”
What is known about the «Trump tariffs»:
On April 2, Trump announced the imposition of tariffs on goods from 185 countries and territories. The minimum tariff rate was 10%, for goods from the European Union it was 20%, for China – 34%.
In addition, from April 3 the administration imposed a 25 percent tariff on all cars imported into the country.
On April 4, China responded to these actions by imposing tariffs on all American imports at a level of 34%, which took effect on April 10.
On April 9, Trump announced further increases in tariffs on Chinese imports to 125% (previously 104%).
In response, China imposed an additional 84% tariffs on imports from the United States. On April 10, the White House said that the overall rate on Chinese imports would be about 145%.
The latest Trump order raises tariffs on China to 125% from 84%, in addition to a 20% tariff on fentanyl, which had been introduced earlier.
On July 12, Trump announced the introduction of 30% tariffs on imports of goods from Mexico and the EU; the new tariffs will take effect on August 1. European Commission President Ursula von der Leyen stressed that such a step would harm business and consumers on both sides of the Atlantic.
On September 5, Trump signed a decree lowering tariffs on Japanese cars to 15%.
On September 25, the U.S. president announced a new wave of tariffs, including a 100% tariff on imported branded medicines if the manufacturer does not have production facilities in the United States; also a 25% tariff on imported heavy-duty trucks and a 50% tariff on kitchen and bathroom cabinets.
On October 6, Trump announced 25% tariffs for medium- and large-sized trucks from November 1, 2025. On October 9, he added that tariffs are an important part of his options for negotiating peace deals and supporting economic stability.
Impact on the German economy:
Changes in U.S. tariff policy directly affected demand for German goods: cars, equipment, and chemicals remain key export items. Economists note that a slowdown in sales to the U.S. and rising competition from China are putting pressure on Germany’s industrial sector and pushing the country to diversify its markets.
At the same time, the growing significance of the Chinese market for Germany requires balanced foreign policy steps and adaptation to the new conditions of global trade. These trends are shaping a new reality for the German economy on the world stage and prompting thoughtful decisions in industrial policy and exports. (GSF with Agency report)
