Tariff free

Germany was the economic power house of Europe all during the cold war. They manufactured high quality industrial products and exported them, many to the US. Before the Ukraine war (prior to February 2022), Germany maintained a massive, decades-long trade surplus, driven by strong manufacturing exports (machinery, cars, chemicals) and reliance on cheap Russian energy imports. In 2021 the trade surplus was $200 billion. They did this by producing quality products and using tariffs. In 2021 sending a $30,000 Cadillac to Germany cost an additional $11,000 in tariffs, fees and VAT. The cost to import a $30,000 German car to the US was $750. Germany’s debt to GDP ratio was 70% and the US was 120%. Trade deficits are counted as debt. Recent negotiations have tended to even this out with import tax on a $30,000 German car at $4,500 and the tax on shipping an American car to Germany remains the same. This encourages Germany to produce more cars in the US to avoid the tariff. As of early 2025, German carmakers are looking to expand North American output to secure their market position in the face of tariff risks, which has already seen a significant portion of German automotive jobs (up to 78,000) potentially moving to the U.S.. Tariff free is best but only if they are fair. Zero tariffs for all countries would be ideal.