It is in America’s interest to establish positive relations with Germany. Germany is one of the United States’ closest and strongest allies in Europe. U.S. relations with Germany are based on close and vital relations as friends, trading partners and allies. In the political sphere, Germany stands as the center of European affairs and plays a key leadership role as a member of the G-7, G-20, NATO and the Organization on Security and Cooperation in Europe (OSCE). In every diplomacy, Germany has often acted as a go-between and it is important for President Trump to count on Germany in Europe.

Positive Aspects

  1. Germany, the largest European economy has maintained a strong presence in the United States.
  2. German investment is highly sought after by state and local governments across the United States as it is associated with efficient technologies, a high degree of value added, and well paid jobs.
  3. About 3,500 German majority-owned business operations are present in the United States. As a whole, more than 4,700 companies in the United States benefit from German direct investment.
  4. U.S. subsidiaries of German-owned firms play a vital role in the U.S. company with competitive German businesses contributing to the economic health and prosperity of the American economy.
  5. Capital stock investment of nearly U.S.$ 200 billion by small, medium, and large German subsidiaries in property, plant equipment adds value to each state economy and contributes to the quality of life in the United States.
  6. U.S. subsidiaries of German-owned firms invest more than U.S.$ 7 billion in the U.S. each year in research and development.
  7. Almost 670,000 American jobs are ‘insourced’ and supported by U.S. subsidiaries of German companies to states across the country, everywhere from Alabama and California to Michigan and Virginia.
  8. German technology imports and innovation play an important role in the success of the U.S. manufacturing industry.
  9. Germany supports U.S.$ 45 billion in U.S. exports to Germany from all 50 states, making it the fifth largest export market for the United States worldwide.

Negative Aspects

  1. Germany, given the size of its population, runs a massive surplus with the United States.According to U.S. government figures, the U.S. ran a deficit with Germany of $74 billion in 2015 and keeps on growing.
  2. Out of the total U.S. deficit for 2015 of $531 billion, Germany accounted for 14% of it, an impressive achievement given that Germany only accounts for 4.6% of the global economy. Most of the German exports to the U.S. are high-value goods such as automobiles (12% of German exports to the U.S.)vehicle parts , chemicals, and machinery and aerospace.
  3. Under World Trade Organization rules, it is very hard to impose unilateral tariffs on one country without ripping up the entire network. But that doesn’t mean that it cannot be done e.g. Volkswagen’s diesel scandal, for example, might be the perfect excuse to slap punitive restrictions on the German car industry. Likewise, its medical exports can always be deemed “unsafe.”Restrictions on German exports are the easiest way to do that and that means it can’t be ruled out.
  4. With Germany enjoying the world’s largest current account surplus at $281 billion, President Trump, under existing U.S. law, can introduce “temporary safeguards” such as tariffs, to protect domestic industries threatened by certain imports. 

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