Germany's trade deficit with China swelled to roughly 55 billion euros in the first half of 2026, up from 40 billion euros a year earlier, as German exports to Beijing fell more than 12 percent while imports climbed nearly 9 percent. Total two-way trade between the countries exceeded 128 billion euros, outstripping Germany's commerce with the United States by about 3 billion euros.
China, which overtook the U.S. as Germany's largest trading partner in 2025 after Donald Trump reimposed protectionist tariffs, has since slid from the country's second-largest export market in 2021 to its ninth. German shipments to China dropped to just under 37 billion euros, while imports rose to 91.8 billion euros. Exports to the United States also declined, falling roughly 6 percent to 74 billion euros, even as American imports into Germany gained 7 percent.
Despite the headwinds, Germany's overall exports rose 3.7 percent to about 817 billion euros in the period. Volkswagen, meanwhile, plans to cut 100,000 jobs amid broader industrial strain.