Monday, February 17, 2025

Germany

If you import a $50,000 Mercedes Benz from Germany the import tax is 2.5% or $1,250. If you export a $50,000 Cadillac to Germany you pay a 10% import tax along with a 19% value added tax for a total of $14,500. This type of imbalance has been going on in many countries for many years and is one of reasons why the US has a trillion-dollar trade deficit. Germany has the 40th largest army in the world and spend 1.5% of its GDP on defense. The US has the largest army and spends 3.4% of GDP on defense. Germany like most European countries has depended on the US for protection since the end of WW 2. There are 30 countries in NATO and the US pays 20% of the budget. Germany has had a trade surplus with the US for forty years capping at $150 billion last year. As President Biden used to say, cmon man!

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