Germany

With tariffs in the news, it is time to compare Europe with the US or more specifically Europe’s big manufacturing country, Germany, with America. For many years the US has run trade deficits while Germany has had trade surpluses. Germany’s national debt is 62% of GDP while the debt in the US is 122%. Germany spends 1.5% of GDP on defense while the US spends 3.7%. Germany spends .87% of its GDP on interest on the debt while the US spends 3.0%. Germany is in a much better economic position for three reasons. First, they rely on the US for their national defense. Second, they have high tariffs on all goods from the US. Third, they have a trade surplus meaning a small national debt. All three of these advantages are only possible because of US foreign policy. Germany wants the EU to consider using its most powerful tool to retaliate against Trumps trade war. Germany’s leaders still hold out hope that a free-trade agreement could follow Trump’s tariff “mania.” The ball is now in their court. Germany is representative of Europe and for almost all of the countries of the world.