Even German industrialists, known for their staunch pragmatism in international relations, sighed with relief at the news of Joe Biden’s victory in the presidential election in the United States. For four years, they were the target of direct attacks from Donald Trump and lived under the threat of tariffs against the automobile, the large German sedans being accused of being “Far too many” in the streets of New York.
Relieved, but not euphoric for all that. The business community has learned the lessons of the Trump era. “When he was elected in 2016, a lot of people in German industry and business thought he would not take all the protectionist measures he announced during his campaign,” remembers Stormy-Annika Mildner, director of the external affairs department at BDI, the large German industrial federation. “We quickly became disillusioned. His policies have affected trade in a very important way. But above all, transatlantic relations of trust have deteriorated considerably. “
This last point is undoubtedly the most painful. Because the exchanges between Germany and the United States, anchored in the history of the two countries, are also charged with emotion. It was the Marshall Plan that allowed Germany, which had been destroyed militarily and morally, to revive its economy after the Second World War. Washington also played a major role in the German reunification of 1990.
Economically, the weight of trade is considerable. In 2019, the United States was the first destination for “made in Germany”. German companies shipped goods worth 118.7 billion euros (up 6% from 2017), including vehicles, auto parts, machinery and chemicals. Germany has its largest global trade surplus with the United States: in 2019, companies exported 47.3 billion more than they imported.
The era of perfect free trade is arguably over
This imbalance was at the origin of Donald Trump’s anger against Berlin, which he accused of purposely maintaining this exceptionally high surplus. And too bad if the German companies, in particular the automobile, produce a lot on the spot, maintain 700,000 jobs on the other side of the Atlantic and finance two training centers there for apprenticeship in technical trades, in Chicago and Atlanta.
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