BERLIN, Germany: China has once again become Germany's largest trading partner, overtaking the United States in the first eight months of 2025 as U.S. tariffs under President Donald Trump hit German exports, preliminary data from the German statistics office showed.

Trade between Germany and China totaled 163.4 billion euros (US$190.7 billion) from January to August, edging past the 162.8 billion euros in trade with the United States, according to Reuters calculations.

The shift marks a reversal from 2024, when the U.S. briefly claimed the top spot after eight years of Chinese dominance. Germany had sought to diversify away from China, citing political tensions and Beijing's "unfair" trade practices, but this year's renewed tariff war has redrawn global trade flows.

German exports to the United States fell 7.4 percent in the first eight months of 2025 to 99.6 billion euros, while August alone saw a 23.5 percent year-on-year plunge — the steepest monthly drop in over a decade.

"There is no question that U.S. tariff and trade policy is an important reason for the decline in sales," said Dirk Jandura, president of Germany's BGA foreign trade association.

He noted that U.S. demand for traditional German export staples — cars, machinery, and chemicals — had slumped sharply.

"With ongoing tariff threats and a stronger euro, German exports to the U.S. are unlikely to rebound any time soon," added Carsten Brzeski, global head of macro at ING.

While exports to China fell 13.5 percent year-on-year to 54.7 billion euros, imports from China surged 8.3 percent to 108.8 billion euros, driving Beijing's overall lead in bilateral trade.

"The renewed import boom from China is worrying, particularly as data shows these imports come at dumping prices," Brzeski warned. "It not only increases German dependence on China but adds pressure on key industries where China is already a strong competitor."

The data highlight Germany's delicate position, trying to reduce its reliance on China while struggling with sluggish domestic demand and waning export competitiveness.

"In the absence of economic dynamism at home, some in Germany may now be troubled by any shifts on world markets," said Berenberg Bank economist Salomon Fiedler.