China jumps US to return as Germany's top trade partner

"China has reclaimed its title as Germany's top trading partner, dethroning the United States after President Donald Trump launched his tariff onslaught, official data showed Wednesday. Total trade between Europe's biggest economy and China from January to September this year grew slightly to nearly 186 billion euros, according to federal statistics agency Destatis. In the same period, the figure for trade between Germany and the United States dropped by almost four percent to just under 185 billion euros, it said."

"The development "reflects the negative impact that US tariffs are having on German exports to the US," ING economist Carsten Brzeski told AFP. Under a deal struck in July, EU exports to the United States face a baseline levy of 15 percent -- far higher than before Trump's return to office. The tariffs are a heavy burden for the already struggling German economy."

""It shows the ongoing dependence of the German economy and particularly industry on rare earths, semiconductors and other input goods from China," he said. Germany runs a substantial trade deficit with China. The latest Destatis figures showed Chinese imports to Germany rose by 8.5 percent over the first nine months of the year, while German exports to China fell sharply. This comes as Chinese manufacturers, stung by high US tariffs, redirect their goods to other markets, and Chinese companies have emerged as rivals to German firms in many sectors."

From January to September, total trade between Germany and China rose slightly to nearly 186 billion euros while trade between Germany and the United States fell almost four percent to just under 185 billion euros. US tariffs have reduced German exports to the United States, and a July deal imposes a baseline 15 percent levy on EU exports to the US. The tariffs burden the struggling German economy. Germany remains dependent on Chinese inputs such as rare earths and semiconductors and runs a substantial trade deficit with China, as Chinese imports rose 8.5 percent while German exports to China fell sharply. Chinese manufacturers are redirecting goods to other markets and competing with German firms in multiple sectors.

Read at The Local Germany