Germany Navigates US Trade Policy Challenges and Chinese Economic Relations in 2026

As trade dynamics shape Germany's economic direction in 2026, significant developments are emerging on both the transatlantic front and in relations with China. On March 12, 2026, a pivotal webinar titled "Transatlantic Business in 2026: Politics & Practice" will feature experts discussing the impact of US trade policy on German businesses. Paul Meyer, head of US trade policy at the German Chamber of Commerce and Industry (DIHK), will provide an overview of recent political developments in Washington and Brussels, including new tariff threats, Supreme Court rulings, and ongoing investigations in the US. Dr. Melanie Jordan from Germany Trade & Invest (GTAI) will follow with insights into US trade measures, focusing on the International Emergency Economic Powers Act (IEEPA) and Section 232 tariffs, offering practical guidance for German companies to navigate these challenges. The free webinar encourages participants to submit questions in advance for a tailored Q&A session, underlining the importance of informed engagement with evolving trade policies.

Concurrently, Chancellor Friedrich Merz is undertaking his first official visit to Beijing since assuming office in 2025, emphasizing the importance of fair trade with China – Germany's largest trading partner. Merz acknowledges China's growing global influence, including its significant role in Moscow, while German diplomatic circles hope he will adopt a firmer stance to reduce economic dependence on China. Concerns underscore this approach, such as China's increasing investments in sensitive sectors like telecommunications through companies like Huawei and the geopolitical implications of China's support for Russia amid the ongoing war in Ukraine. German lawmakers, including Boris Mijatovic from the Bundestag's Foreign Affairs Committee, stress that discussions with China must remain candid, especially regarding adherence to international law and the war in Ukraine. Political analysts caution against short-term economic concessions that may come with stringent conditions, urging a balanced strategy that safeguards Germany’s economic and political interests.

Together, these developments reflect Germany’s dual challenge in 2026: addressing evolving US trade policies that affect German businesses and recalibrating economic ties with China amid complex geopolitical tensions. The upcoming webinar and Merz’s China visit symbolize proactive steps toward managing these critical international trade relationships.