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IW Study Finds Chinese Goods Flooding Germany as US Tariffs Divert Trade

The institute urges the EU to deploy broader countervailing duties to counter state-backed low-price exports.

Overview

  • Chinese imports to Germany rose about 11% in the first half of 2025 while average import prices from China fell nearly 4%, according to an IW analysis funded by the German Foreign Office.
  • Over the same period, Chinese exports to the United States declined by roughly 16% as higher U.S. tariffs increased costs for exporters.
  • In the second quarter, the value of plug-in hybrid car imports from China to Germany surged 131% while shipments of that product group to the U.S. fell by about 99%.
  • Increased inflows were also recorded for transmissions, trucks, sheet and film materials, heaters, and polyester and polyamide plastics, adding pressure on German manufacturers.
  • IW says Chinese state support and an undervalued yuan enable aggressive pricing and calls on Brussels for stronger, wider countervailing duties, with no new EU measures reported yet.