U.S. overtakes China as Germany's top trade partner in 2024

Germany, Europe’s largest economy, reported significant shifts in its trading landscape last year. For the first time since 2015, the United States replaced China as Germany's biggest single trading partner according to official figures released by Germany's Federal Statistical Office. The bilateral trade between the U.S. and Germany experienced a slight increase of 0.1%, amounting to 252.8 billion euros ($264.3 billion) in 2024. In stark contrast, trade with China, previously Germany's largest trading partner from 2016 to 2023, fell by 3.1%, totaling 246.3 billion euros. Despite these shifts, the Netherlands maintained its position as Germany’s third-largest partner, though trade volumes dropped by 4.2%. The economic backdrop has seen Germany struggling with stagnant growth for five years and facing increasing competition from international players, particularly Chinese companies. The country, renowned for its engineering prowess and exports such as industrial machinery and luxury cars, has seen its economy contract in the past two years. Addressing these challenges will be a crucial task for the incoming German government, particularly following the upcoming elections. The administration will also need to adapt Germany's trade strategies in light of changing U.S. policies under its new administration. Another notable development was the growth of Germany's trade surplus with the U.S., which increased from 63.3 billion euros in 2023 to 70 billion euros last year. German exports to the U.S. rose by 2.2%, reaching 161.4 billion euros, while U.S. imports saw a decline of 3.4%, totaling 91.4 billion euros. Meanwhile, the dynamics with China worsened for Germany, as imports from China decreased by 0.3%, at 156.3 billion euros, and German exports to China fell dramatically by 7.6%, resulting in 90 billion euros. Additionally, Germany's overall exports for the year stood at 1.56 trillion euros, a slight decline of 1.2% compared to 2023, with total imports also falling by 3% to 1.32 billion euros. These developments signify a notable shift in Germany's trade relationships and point to increased economic challenges moving forward, highlighting the importance for policymakers to reassess strategies that could revive growth and sustain Germany's economic stature in a competitive global marketplace.