Another US Tariff Shock for Germany
In yesterday’s post, I showed two charts that illustrate what a difficult position German auto makers are in. The first showed how the US is shrinking as an export market for German auto makers, a shift that’s occurred since the start of President Trump’s second term and is therefore likely due to US tariffs. The second showed the massive rise in China’s car exports, which in 2022 were comparable to Germany’s but are now twice as large. Germany is caught in a pincer movement and needs to tread carefully. I was dismayed to see German Chancellor Merz’s recent comments that the US is being “humiliated” ...
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