For the first time since 2015, the United States has reclaimed its position as Germany’s largest single trading partner, edging out China amid declining exports and persistent economic struggles. According to Germany’s Federal Statistical Office, total trade between the US and Germany reached 252.8 billion euros ($264.3 billion) in 2023, a marginal 0.1% increase from the previous year.
China, which held the top spot from 2016 to 2023, saw bilateral trade with Germany drop 3.1% to 246.3 billion euros.
Germany hasn’t seen significant economic growth in five years,a stark reality complicating efforts to reverse this trend. Analysts point to intensifying competition from Chinese manufacturers, global supply chain disruptions, and stagnant demand for engineered goods as key factors.
The US-Germany trade surplus ballooned to 70 billion euros in 2023, driven by a 2.2% rise in German exports (161.4 billion euros) and a 3.4% decline in American imports (91.4 billion euros). Conversely, Germany’s trade deficit with China widened significantly:
- German exports to China plunged 7.6% to 90 billion euros
- Chinese imports dipped 0.3% to 156.3 billion euros
This reversal coincides with Germany’s broader economic contraction – GDP fell in both 2022 and 2023 – and a 1.2% decline in total exports (1.56 trillion euros). The Netherlands ranked third in German trade at 205.7 billion euros, down 4.2% annually.
As Sunday’s German election approaches, policymakers face mounting pressure to revive trade competitiveness while navigating the Biden administration’s Made in America priorities. With industrial machinery and automotive sectors particularly vulnerable, strategic realignments in global trade partnerships appear inevitable.
