According to data from the German Federal Statistical Office, the total trade volume between Germany and the United States in the first half of 2024 amounted to approximately €127 billion, showing significant growth compared to previous years.
German exports to the U.S. increased by 3.3% in the first six months, reaching nearly €81 billion, while imports from the U.S. decreased by 3.4%, down to €46.1 billion.
This indicates that despite the decline in imports, Germany’s strong export momentum to the U.S. has been the main driver of the rise in bilateral trade volume.
| Month | Total value of bilateral goods imports and exports between China and Germany (US$ billion) | Total value of goods exported by China to Germany (US$ billion) | Total value of goods imported by China from Germany (US$ billion) | Trade balance between China and Germany (US$ billion) |
| June 2023 | 184.13 | 89.79 | 94.34 | -4.55 |
| July 2023 | 174.3 | 84.63 | 89.67 | -5.04 |
| August 2023 | 181.6 | 83.68 | 97.92 | -14.24 |
| September 2023 | 169.06 | 82.02 | 87.04 | -5.02 |
| October 2023 | 155.74 | 75.02 | 80.72 | -5.7 |
| November 2023 | 160.19 | 77.31 | 82.88 | -5.57 |
| December 2023 | 173.07 | 86.18 | 86.89 | -0.71 |
| January 2024 | 167.17 | 90.01 | 77.15 | 12.86 |
| February 2024 | 133.19 | 70.89 | 62.3 | 8.59 |
| March 2024 | 160.25 | 81.96 | 78.29 | 3.67 |
| April 2024 | 172.65 | 86.02 | 86.63 | -0.61 |
Meanwhile, the trade volume between Germany and China reached around €122 billion, still at a high level but slightly lower than that with the U.S.
German exports to China decreased by nearly 3% in the first half of the year, to just over €48 billion, suggesting that the trade relationship between Germany and China is undergoing some adjustment.
Germany’s Key Cities and Geographic Overview
Berlin is Germany’s capital and largest city, serving as the political, economic, cultural, and technological hub.
Other important cities like Hamburg, Munich, and Frankfurt also play significant roles as major commercial centers.
Germany, officially known as the Federal Republic of Germany (Deutsches Bundesrepublik), is located in central Europe.
Its central position has historically made it a strategic region. Germany is a transportation hub connecting Eastern and Western Europe and is also an economic, political, and cultural powerhouse.
It is a parliamentary republic composed of 16 federal states, bordered by Denmark to the north, the Netherlands, Belgium, Luxembourg, and France to the west, Switzerland and Austria to the south, and the Czech Republic and Poland to the east, making it one of the countries with the most European neighbors.
Despite being a landlocked country with no direct coastline, Germany has access to the North Sea and Baltic Sea through port cities like Hamburg and Bremerhaven.
The country features diverse landscapes: lowlands in the north, mid-range mountain ranges in the center, and the Bavarian plateau and Alpine region in the south.
Major rivers like the Rhine, Danube, and Elbe flow through the country, providing ample water resources and facilitating transport.
Germany’s climate transitions from temperate oceanic to temperate continental, with distinct seasons, moderate rainfall, and fairly mild winters and summers.
The western coastal areas experience more precipitation than the eastern inland areas.
Currency, Population, and Language
Germany uses the Euro (EUR), the common currency of the Eurozone. This is important to note since some neighboring countries, such as Switzerland, use other currencies like the Swiss Franc (CHF).
Germany’s population is around 83 million, making it one of the largest countries in Europe. Due to its high standard of living and strong economic development, Germany has significant consumer spending potential.
The official language is German. Businesses aiming to enter the German market should establish German-language websites and provide German customer service, which will greatly facilitate customer communication and cooperation.
Religion and Market Characteristics
Although religion does not heavily influence business activities, understanding the local religious landscape is important when planning culturally respectful marketing campaigns, especially around major holidays.
Christianity, particularly Catholicism and Protestantism, is the dominant religion, though there is also a considerable number of non-religious people and a Muslim minority.
The German market is highly consumer-oriented, with a strong focus on product quality and sustainability.
Germans appreciate high-quality products and services, and they tend to be cost-conscious, thoroughly evaluating the value of their purchases.
As a result, competitive product quality is a key requirement for success in the German market.
Consumer Habits
German consumers are highly attentive to price and quality. They prefer to buy durable and high-quality goods and are willing to pay more for premium products.
Environmental concerns and sustainability are also top priorities for many consumers, especially when choosing products.
Exporting to Germany: Key Considerations
When exporting to Germany, companies must adhere to European regulations and standards, including quality and safety standards.
It’s also important to understand Germany’s import duties and procedures.
Some industries, such as automotive and medical devices, are subject to particularly stringent regulations.
Germany’s Import and Export Policies
- Customs Policies:
- EU Standardization: Germany follows the European Union’s customs rates and measures, including standard tariffs, quotas, and caps.
- Tariff Reductions and Preferences: Specific countries and products enjoy tariff reductions or exemptions under agreements such as free trade agreements (FTAs) and the Generalized System of Preferences (GSP).
- Non-Tariff Measures:
- Anti-Dumping and Anti-Subsidy Policies: Germany follows EU rules regarding anti-dumping and anti-subsidy measures to protect local industries from unfair competition.
- Import/Export Bans: The EU has banned imports/exports of specific goods, such as tools for torture, counterfeit goods, and endangered species products.
- Trade Agreements and Free Trade Zones:
- Bilateral and Multilateral Agreements: Germany is active in signing bilateral and multilateral agreements to promote trade liberalization and facilitation.
- Free Trade Zones: As an EU member, Germany benefits from preferential treatment in free trade areas established by the EU.
- Trade Barriers and Protection Measures:
- Technical Barriers: Germany enforces strict technical standards to ensure that imported products meet domestic requirements.
- Environmental Barriers: Increasing environmental consciousness has led to stricter import regulations regarding carbon emissions, green packaging, and other sustainability measures.
- Trade Regulation and Enforcement:
- Regulatory Authorities: The Federal Ministry for Economic Affairs and Energy (BMWi) is responsible for formulating and implementing trade policies.
- Enforcement Bodies: Agencies like customs and tax departments ensure compliance with trade regulations and prevent illicit activities such as smuggling.
- Trade Promotion and Support:
- Export Promotion Policies: Germany encourages domestic companies to expand internationally by offering export credits, insurance, and market development funds.
- Investment Promotion Policies: Germany maintains an open stance toward foreign investments, offering incentives and streamlined approval processes for foreign investors.
- Trade Compliance and Dispute Resolution:
- Compliance Requirements: Germany imposes strict compliance regulations on imported goods, particularly regarding quality, safety, and environmental standards.
- Dispute Resolution Mechanisms: Germany and the EU have robust mechanisms for resolving trade disputes, including the World Trade Organization (WTO) dispute resolution system.
Key Industries
Germany’s main industries include automotive manufacturing, machinery, chemicals, electronics, and medical equipment.
These are traditional pillars of the German economy and are highly active in foreign trade.
Key Holidays
Some key holidays in Germany to consider for marketing and logistics planning include:
- Christmas: December 24th to 26th.
- Easter: Celebrated between late March and mid-April.
- Labor Day: May 1st.
- German Unity Day: October 3rd.
Online Customer Development
To develop German customers online, consider setting up a dedicated German-language website and offering customer support in German (via phone, email, etc.).
Additionally, promoting through popular German social media platforms like Facebook and Twitter can be effective.
Another approach is to use local directories to find potential leads.
Germany has many directory websites that provide various types of information and services, such as business listings, phone numbers, addresses, and industry details.
Below are some commonly used German directory websites, search engines, and B2B platforms:
- Das Telefonbuch (www.dastelefonbuch.de): Germany’s largest phone book and yellow pages service provider, offering search services for personal and business information.
- Gelbe Seiten (www.gelbeseiten.de): The largest business directory in Germany, providing information, addresses, and contact details for various industries and companies.
- Meinestadt.de (www.meinestadt.de): This site provides city and regional information, including business listings, addresses, phone numbers, and searches for local facilities and services.
- Kompass (www.kompass.com): An international business information database offering company listings, product information, and services for Germany and other countries.
- Wer liefert was (www.wlw.de): Provides business listings, supplier information, and product search features within Germany and internationally.
- Firmenwissen (www.firmenwissen.de): An online database offering information about German companies, including basic details and financial reports.
- Google.de: The German version of Google search engine, providing comprehensive search services for websites, images, videos, news, and more.
- Bing.com: Microsoft’s search engine, which has a user base in Germany and offers search services for web pages, images, and videos.
B2B Platforms
- Xing (www.xing.com): Germany and Europe’s leading professional social network platform, offering opportunities for business contacts, cooperation, and communication.
- Wer liefert was (www.wlw.de): Germany’s leading B2B platform providing services for business cooperation and supply chain management.
- EUROPAGES (www.europages.de): A B2B platform for European suppliers and buyers, offering multilingual product information, business listings, and collaboration opportunities.
- Turing Sou (www.turingsou.com): A map search tool that can be used to directly develop German customers.
Main Channels
Additionally, you can develop customers through e-commerce platforms, offline retailers, wholesalers, and agents.
It’s also possible to establish partnerships with local German companies or set up offices or collaborate with local agents to expand your sales network.
Etiquette and Taboos When Communicating with Customers
In business settings, avoid overly direct verbal expressions and actions, and respect the other party’s personal space and freedom.
Germans value punctuality and precision, so it is crucial to pay attention to time management in business activities and avoid being late.
Also, avoid speaking loudly or being overly affectionate in public places.
Consumer Habits
In 2024, German consumer habits are showing the following trends:
- Increased Price Sensitivity: Due to high inflation, consumers are becoming more price-conscious, favoring promotional goods and private-label products to save money, particularly in the food and daily necessities sectors.
- Focus on Environmental Sustainability: Despite economic pressures, consumers still prioritize environmental sustainability, opting for organic food, eco-friendly packaging, and local products, especially among younger and higher-income groups.
- Emphasis on Digital Shopping Experience: Online shopping is growing rapidly, and consumers have high expectations for secure payments, return policies, and good logistics services. Privacy and data protection are crucial in online shopping.
- Attention to Quality and Durability: Consumers are making more rational purchasing decisions, favoring high-quality, durable products and being willing to pay more for items that will last longer.
Key Points When Doing Business with German Customers
- Precision and Attention to Detail: Both individual consumers and business clients pay close attention to product details, contract terms, and long-term relationships.
- Price Sensitivity but Value-Conscious: While customers care about price, they are willing to pay a premium for high-quality, durable products.
- Innovation-Driven Purchasing Decisions: Business clients prefer to buy innovative products that can improve efficiency and competitiveness.
- Digital Management: Younger consumers and business clients prefer digitalized shopping and management processes, favoring suppliers who offer digital logistics solutions.
- Strong Sense of Social Responsibility: Customers are particularly concerned about corporate social responsibility and prefer suppliers who align with environmental and social responsibility values.
Trade Policy
Germany, as an EU member, follows EU trade policies, which means that goods flow between member states without tariffs, while trade with non-EU countries may face tariffs and non-tariff barriers.
In 2024, Germany continues to implement green trade policies, incorporating more environmental and sustainability standards into import and export policies.
Companies must adhere to strict environmental regulations and production standards, particularly in sectors like automotive, energy, and chemicals.
Germany remains open to foreign investment but applies stricter reviews for sensitive industries (such as technology and defense).
Product Certifications
The main product certifications for the North American market include four types: CE certification, RoHS certification, REACH certification, and GS certification.
- CE Certification:
- Scope: A wide range of products such as electronic devices, machinery, toys, etc.
- Certifying Body: Manufacturers can self-declare or go through third-party organizations like TÜV.
- Mandatory: Yes, products must comply with EU market standards.
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