Germany set for record trade deficit with Asia-Pacific in 2026, report says

Germany’s trade deficit with Asia-Pacific is projected to reach a record nearly €146 billion (about $163 billion) in 2026, according to a report by Germany Trade & Invest (GTAI) seen by Reuters. The imbalance is expected to be driven by falling German exports to China, offset only partly by growth in sales elsewhere in the region. Exports to 29 core Asia-Pacific economies are forecast to decline 3.2% to €185.3 billion, while imports are expected to rise 6.4% to €330.9 billion. GTAI says China accounts for about half of Germany’s goods trade with Asia-Pacific. Machinery exports to China fell 18% in the first seven months of 2026, and automotive exports dropped 30%. Meanwhile, German car sales in China have nearly halved from a peak above 5 million vehicles.