Germany's trade deficit with China widens in first half of 2026

Germany’s trade deficit with China widened significantly in the first half of 2026. According to preliminary data from Germany Trade & Invest (GTAI), the deficit rose to approximately 55 billion euros, up from 40 billion euros during the same period last year.

While China remains a major trading partner, German exports to the country fell by over 12% year-on-year to nearly 37 billion euros. This decline is attributed to a weakening Chinese domestic economy and an increased focus on domestic value chains. Consequently, China has dropped to the ninth largest market for German goods, down from second place in 2021.

Conversely, German imports from China grew by 8.9% to 91.8 billion euros. The German manufacturing sector faces simultaneous pressure from Chinese competition and American tariffs, leading to job reductions in key industries such as automotive manufacturing at Volkswagen.