Germany Prepares for Trade Conflict with Trump
China isn't the only nation with a big fat trade surplus with the United States ... Germany's current account surplus has never been as high as this year and never before has that surplus represented such a significant share of the country's gross domestic product. Making matters worse is the fact that the US is the largest consumer of German exports.
As high as it is, though, the current surplus is likely to continue growing. The recent fall in the euro's value relative to the dollar following Trump's election makes German products and services even more competitive. And many economists believe that the value of the dollar will continue to climb, which means that the value of the euro against the dollar will shrink correspondingly. Their predictions are based on recent indications that Trump's announced economic stimulus policies will push up both America's sovereign debt load and its interest rates.
Germany's current account surplus is higher than ever before and the country is concerned that it could become a target of US president-elect Donald Trump's ire as a result. Berlin is already making preparations for the possible conflict.