Tensions Escalate Between the U.S. and Germany
Relations between the United States and Germany have become increasingly tense as the countries spar over a U.S. Treasury report that was critical of the German economy, The Wall Street Journal reports.
According to the report, the German economy actually harms the progress of many nations surrounding it due to the country’s trade surplus. By running a trade surplus, the report says Germany is making it harder for industries in other economies to compete with German goods because Germany is exporting so much more than it is importing.
The German trade surplus currently stands at 7 percent of the country’s gross domestic product. This compares unfavorably to the Chinese trade surplus, which is at 2.5 percent of the nation’s GDP, and to the U.S. rate, which comes in at just under 3 percent of American GDP. Some countries, such as Japan, have virtually gotten rid of their trade surpluses entirely.