According to CoinMeta, and as reported by Reuters, Germany's trade deficit with China expanded in the first half of 2026, despite China still being Germany's largest trading partner. German exports to China decreased by more than 12% year-on-year to around 37 billion euros. Meanwhile, imports from China increased by 8.9% to 91.8 billion euros, leading to a trade deficit that rose from 40 billion euros in the same period last year to 55 billion euros. German manufacturing is facing dual pressures from U.S. tariffs and competition from China, resulting in job cuts at industry giants such as Volkswagen. Overall, German exports grew by 3.7% in the first half of the year to reach 817 billion euros.