U.S. Overtakes China as Germany’s Top Trading Partner

BERLIN (Reuters) – The United States has surpassed China to become Germany’s largest trading partner in the first half of 2024, based on preliminary data from the German statistics office. This shift comes as Germany moves to reduce its dependence on Beijing amid ongoing geopolitical tensions and a robust U.S. economy.

From January to June 2024, trade between Germany and the U.S. reached approximately 127 billion euros ($139 billion), whereas trade with China totaled about 122 billion euros, according to calculations by Reuters.

Previously, China had held the top position as Germany’s trading partner for eight consecutive years until the U.S. reclaimed the lead in the first quarter of this year by a narrow margin. Germany has expressed intentions to decrease its reliance on China, citing political discrepancies and accusations of “unfair practices”; however, specific policy actions remain unclear.

Lola Machleid, a foreign trade expert at the German Chamber of Industry and Commerce (DIHK), noted that the stability of the U.S. economy has positively influenced German exports. Overall, German exports to the U.S. grew by 3.3%, reaching nearly 81 billion euros in the first six months, while exports to China declined by almost 3% to just over 48 billion euros.

Imports from China decreased by nearly 8% to 73.5 billion euros, contrasted by a drop in U.S. imports of 3.4% to 46.1 billion euros, facilitated by energy commodity supplies.

Machleid highlighted the challenges of predicting the future development of these trading relationships due to prevailing geopolitical uncertainties and the unstable economic outlook in the U.S., China, and Germany.

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