America reclaims its position as Germany's top trading ally once more
In 2024, Germany and the USA maintained a significant trade relationship, with a total turnover of 531.6 billion euros in exports from Germany to the USA. This made Germany the largest exporter of goods to the United States among all EU countries.
Germany's exports to the USA were worth 161.4 billion euros, with cars being among the top exported goods. The automotive sector, along with aerospace, luxury goods, and high-tech industries, are key sectors heavily dependent on transatlantic trade between the USA and the EU. These sectors rely on exports and integrated supply chains, making them vulnerable to trade tensions and tariffs.
The USA, in response, charges a basic tariff of 10 percent on EU imports, in addition to high sector-specific tariffs of 25 percent on cars and car parts and 50 percent on steel and aluminum. Despite these tariffs, the weighted tariff rate of the USA on goods from the EU is currently around 11 percent.
The trade relationship was not one-sided, as the USA was also the second largest importer of goods for the European Union, accounting for 13.7% of all EU imports. Goods worth 333.4 billion euros were imported from the USA to the EU, with crude oil products being the most frequently imported U.S. goods.
The Netherlands and Germany were the main importing countries from the United States in 2024. Germany, in particular, had an export surplus of around 70 billion euros with the USA, making it the country with the highest export surplus with no other nation. This surplus and the overall trade relationship suggest a balanced economic interdependence between the two nations.
It is important to note that the U.S. goods trade deficit with the EU does not fully capture the complex economic relationship between the two regions. The U.S. and the EU are highly integrated economically, with massive two-way investments and intra-company transfers constituting about a third of all trade. While the U.S. may show a deficit in goods trade, the overall economic relationship includes substantial bilateral investment and services trade, where the U.S. sometimes runs a surplus.
In summary, the transatlantic trade between the USA and the EU is a complex and interdependent relationship. Key sectors like automotive, aerospace, luxury goods, and high-tech industries are heavily dependent on this trade, with potential tariff risks impacting their competitiveness and operational strategies. However, the overall economic relationship is balanced through services, investment, and strategic tech cooperation, making a simple deficit an incomplete picture of the relationship.
- During the policy discussions, it's crucial to consider the implications of tariffs on employment and business in the automotive, aerospace, luxury goods, and high-tech industries, sectors heavily dependent on the transatlantic trade between the EU and the USA.
- To promote a favorable business environment, community and employment policies should address the vulnerability of these key sectors to trade tensions, as any disruption in their integrated supply chains could impact their financial stability and general-news coverage.
