Germany, US on collision course in Trumpian era
By Abed Akbari
International affairs expert
Trump’s victory signifies increased defense spending and security pressures for Europe. Simultaneously, it will also impose greater economic strain on Germany. Germany’s situation is expected to deteriorate more sharply compared to France under a Trump presidency. As Europe’s economic powerhouse post-Brexit, Germany faces significant challenges against Trump, the “tariff man.” Even if US consumers bear the brunt of tariffs—a tax imposed on foreign goods upon entry—and German-European goods continue to sell in the US, the mere existence of tariffs constricts markets. Meanwhile, Germany’s economy, heavily reliant on exports, holds a substantial trade surplus with the US In 2023, Germany recorded a €63.3 billion trade surplus with the US, with a tenth of its exports valued at €157.9 billion going to America. The economic impact of Trump’s tariffs on Germany is projected to amount to 1% of its GDP, negatively affecting future growth as well.
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