The United States has emerged as Germany’s largest trading partner in the first quarter of 2024, overtaking China in combined exports and imports, CNBC reports.
The total trade volume between Germany and the US reached 63 billion euros ($68 billion) in Q1, slightly surpassing the nearly 60 billion euros with China. Strong US growth has increased demand for German products, while factors like decoupling from China, along with weaker domestic demand and increased local production in China, particularly in sectors like automotive, have reduced German exports to China.
Additionally, Germany has been actively pursuing a new China strategy, encouraging companies to reduce their dependency on China. Tensions between the EU and China have also escalated, with investigations into trade practices and threats of tariffs. A recent survey by the German economic institute Ifo revealed a decline in the number of companies dependent on China, reflecting shifting trade patterns and a gradual decoupling from China in favor of the US.
