Nobody’s losing. Trump’s assertion that German cars are unfairly competing with American companies is highly flawed, asserts Matthew DeBord of Business Insider. In fact, German car companies employ thousands of Americans with factories in mainly Republican states. Stopping German companies from selling their cars in the US would just hurt jobs. Furthermore, German automakers only account for around 7% of car sales in the US. Their main focus is luxury brands that barely compete with American companies. Trump misunderstands international trade as a matter of winning and losing, which simply isn’t the case.
When the shoe fits. Trump is right, Germany has profited from unfair trade practices that have held back economic growth in the EU and created a trade imbalance with the US, argues Danny Vinik of Politico. He asserts that with the Euro, Germany’s exports have done immensely well due to a currency that is weaker than theirs would have been otherwise. It then enacted policies that kept salaries lower than neighboring countries and discouraged its consumers from buying products from trade partners. This has led to stagnated growth in the Eurozone. Trump is correct that Germany has hurt economic growth in other countries.