Chris Bryant, Columnist

How Germany Can Make Peace With Trump on Trade

The next Berlin government must prioritize public and private investment.

November 22, 2024 at 5:00 AM UTC

Chris Bryant is a Bloomberg Opinion columnist covering industrial companies in Europe. Previously, he was a reporter for the Financial Times.

Germany’s trade deficit with the US is more about a lack of domestic spending than exports of Mercedes and Volkswagens.
Photographer: Alex Kraus/Bloomberg

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The second coming of Donald Trump is unquestionably bad news for Germany. Thanks to a massive trade surplus with the US, Berlin has long been a favorite whipping boy for the protectionist president-elect. Yet the recent collapse of Germany’s three-party coalition and probable victory of conservative leader Friedrich Merz in national elections next February offers a chance to reset relations and enact economic policies that ultimately help close that gap.

German exports aren’t the problem; a dearth of imports and spending are. The next German government should therefore prioritize boosting domestic demand and raising public and private investment. And then let Trump claim these achievements as a win.