Germany’s record trade surplus with US set to stoke tensions
The balance stood at 69.95 billion euros in 2024, up more than 10% from a year earlier
GERMANY’S goods-trade surplus with the US hit a new high last year, a development that’s likely to irk President Donald Trump just as he threatens tariffs on Europe.
The balance stood at 69.95 billion euros (S$98.14 billion) in 2024, up more than 10 per cent from a year earlier, according to Bloomberg calculations based on Destatis data published on Friday (Feb 7).
Germany’s widening of the surplus reflects both more exports and fewer imports. Lower demand for US goods is likely to be partly a result of the weakness of Europe’s biggest economy, which suffered its second annual contraction in 2024.
During his first term in office, Trump singled out Germany and its car exports when complaining about the country’s large surplus with the US. Since taking office in January he has threatened to impose tariffs on the European Union and has already done so on China.
A Bloomberg Economics analysis this week showed that overseas sales of automotive and industrial-machinery goods might prove tempting areas for the US president if he decides to go for targeted levies against the region.
Allianz chief economist Ludovic Subran agrees, writing in a note that “Germany would be on the front lines in a full trade war scenario, facing the risk of a third consecutive year of recession.” BLOOMBERG
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