Germany‘s trading landscape experienced a significant shift in the first quarter of this year, with the United States surpassing China as its most important trading partner.
Official data from the German statistics office revealed that the total trade between Germany and the U.S. amounted to 63 billion euros ($68 billion) from January to March, slightly eclipsing the figure of just under 60 billion euros with China during the same period.
This reversal marks a departure from the trend observed in 2023 when China held its position as Germany’s top trading partner for the eighth consecutive year, with trade volumes reaching 253 billion euros, marginally ahead of the U.S.
According to Vincent Stamer, an economist at Commerzbank, German exports to the U.S. surged due to the robust American economy, while trade with China experienced a decline, attributed partly to China’s ascent up the value chain ladder and increased domestic production.
Germany’s desire to reduce dependence on China, citing political disparities and unfair trade practices, has also influenced this shift.
Berlin has been vague about concrete steps to mitigate these dependencies. Juergen Matthes from the German Economic Institute IW noted a nearly 12% decrease in German imports from China and a slight dip of over 1% in exports to China in the first quarter.
This, he explained, is partly due to the underperformance of the Chinese economy compared to the U.S.
Matthes further emphasized that the U.S. now constitutes approximately 10% of German goods exports, while China’s share has dwindled to less than 6%.
Dirk Jandura, president of the BGA trade association, highlighted a potential halt to this realignment if the U.S. administration shifts towards protectionist policies post-elections.
Despite the current trajectory towards the U.S., the future direction of Germany’s trade dynamics remains uncertain.
