USA Overtake China as Germany's Top Trading Partner for the First Time in Eight Years

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In a significant shift in international trade dynamics, the United States has overtaken China to become Germany's most important trading partner in 2024. According to an unpublished study by Germany Trade and Invest (GTAI), the volume of trade between Germany and the U.S. reached approximately 255 billion euros, surpassing China's 247 billion euros. This marks the first time since 2016 that the U.S. has held the top position.

The study warns that Germany could find itself caught in potential trade conflicts between its two primary trading partners. As tensions escalate in the U.S.-China trade dispute, Germany may face pressure to align more closely with U.S. interests. The incoming U.S. President has indicated plans to impose new tariffs ranging from 10 to 20 percent on European imports and up to 60 percent on Chinese goods, which could have a serious impact on the German economy, potentially costing it one percent of its economic output, as warned by Bundesbank Chief Joachim Nagel.

Despite these concerns, some experts are urging calm. Simone Menne, President of the American Chamber of Commerce in Germany, pointed out that many of Trump's past policy announcements did not materialize into reality. High tariffs could also hurt the U.S. economy and lead to increased inflation and costlier exports.

In 2024, Germany's overall foreign trade declined by about two percent, with particularly sharp drops in exports to China, which fell by roughly 6.4 percent. In contrast, Germany's trade with Vietnam grew significantly by over 11 percent, as companies looked for alternatives to China.

Other significant trading partners after the U.S. and China include the Netherlands, France, and Poland.

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