Salem Radio Network News Wednesday, September 10, 2025

Business

Chinese goods redirected to Germany because of U.S. tariffs, researchers say

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By Rene Wagner and Maria Martinez

BERLIN (Reuters) -Germany is increasing purchases of Chinese goods in several price-sensitive categories as U.S. tariff moves roil global trade flows, according to a study by the Institute for Employment Research IAB seen by Reuters on Tuesday.

During the October to June period, price- and calendar-adjusted figures show notable increases year-on-year in German imports from China, led by copper (+91%), apparel (+24%) and toys, games and sporting goods (+12%), according to IAB’s analysis based on data from the German statistics office.

“We have not yet been flooded with Chinese goods across the board,” said Enzo Weber, head of the IAB research unit forecasts and macroeconomic analyses. “However, there are some product groups where noticeable effects can be seen.”

In the first seven months of 2025, imports from China rose by 10.5% to 97.6 billion euros, growing at more than twice the pace of total imports, which increased by 4.9% from January to July to around 796.6 billion euros.

The import tilt toward China could intensify price competition in Germany and squeeze margins, especially in sectors where Chinese producers enjoy a structural cost advantage, economists warn in the study.

(Reporting by Rene Wagner and Maria Martinez, editing by Ludwig Burger)

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