The People's Republic of China regained its status as Germany's most important trading partner in 2025, pushing the United States into second place. Although the US remained the largest recipient of German exports, the aggressive tariff policy of the Donald Trump administration led to a 5 percent drop in mutual trade. At the same time, Germany's trade deficit with China deepened, reaching a record level of over 89 billion euros, raising concerns ahead of Chancellor Friedrich Merz's upcoming visit to Beijing.

China regains primacy

Trade with China increased by 2.1% to 251.8 billion euros, pushing the USA into second place in the ranking of Germany's partners.

Trump's tariffs hit exports

German exports to the USA fell by 9.4% (to 146.2 billion euros) as a result of Washington's new tariff policy.

Growing deficit with Beijing

Germany's trade deficit with China deepened to 89.3 billion euros due to a jump in imports of electronic devices.

Weaker growth of the US economy

US GDP in the fourth quarter of 2025 grew by 1.4%, a result significantly below market expectations (2.8%).

Trade between Germany and the People's Republic of China increased by 2.1 percent in 2025, reaching a total value of 251.8 billion euros. This allowed Beijing to return to the top of Berlin's list of most important economic partners, a position China held continuously from 2016 to 2023. Meanwhile, trade with the United States, which temporarily dominated in 2024, fell to 240.5 billion euros. The main reason for this regression was the introduction of high tariff barriers by President Donald Trump, which resulted in a 9.4 percent drop in German exports across the Atlantic. Despite China's return to first place, the structure of this trade is unfavorable for Germany. Imports from China rose by 8.8 percent (to 170.6 billion euros), while exports fell by 9.7 percent. As a result, Germany's trade deficit with Beijing increased by over 20 billion euros. Against the backdrop of these figures, Chancellor Friedrich Merz is preparing for an official visit to China, accompanied by a business delegation including BMW CEO Oliver Zipse. Representatives of the automotive industry emphasize that cooperation with China is crucial for global competitiveness, though it carries the risk of dependence on state-subsidized Chinese manufacturers. Since 2016, China has systematically strengthened its position in German foreign trade, which became the foundation of the FRG's economic model based on cheap technology imports and exports of machinery and cars. Simultaneously, the United States itself recorded weaker-than-forecast growth in GDP, which in the fourth quarter of 2025 amounted to just 1.4 percent year-on-year. President Trump blames the Democratic Party for the slowdown, although analysts point to the negative effects of trade wars and budget disputes. At the same time, the US administration has taken steps to protect the interests of the Bayer corporation, granting the herbicide glyphosate, produced by its subsidiary Monsanto, the status of a substance of critical importance to national security.

Mentioned People

  • Donald Trump — US President responsible for the new tariff policy and the protection of glyphosate.
  • Friedrich Merz — German Chancellor planning an economic visit to China.
  • Oliver Zipse — CEO of BMW, member of the business delegation to China.